Permits saved by large builds
Despite another slow year for new home construction in Medicine Hat, overall construction spending should remain on par thanks to larger residential projects and continued commercial building.
Figures from the city’s planning department for building permits issued in the first 10 months of the year show that overall, activity in the residential sector is up, but that’s heavy weighted by a 183-unit apartment block that nearing completion in Southlands.
Generally though, townhomes and other multiple-unit residences are up, while the detached home sector remains in the doldrums.
“It’s a really positive year on the multi-family side of things,” said Kent Snyder, the general manager of planning services for the city.
“We welcome all development, but it’s had a pretty good year, a really phenomenal difference.”
That is headlined by the Broadstreet properties project in Southlands, where two apartment blocks are being built on land sold by the city. However, smaller projects will also add about 24 units to the rental index, and 14 permits to upgrade existing suites were let so far this year attached to $5.5 million budgets.
Leaving apartment projects out of the calculation, the dip in single family and duplex construction this was more than made up in row housing alone.
Those projects, described as tri-plex or more, total eight so far in 2018, comprising 30 living units — about three times the amount from 2017.
To the end of October, only 41 new home building permits had been issued, compared to 45 at the same time last year.
It’s shaping up to be a thirdstraight year with rock-bottom development figures in the sector. The recent low for an entire 12-month period was 46 new homes permitted in 2016, which was half to one-third the number OK’d from 2012 on.
In the overall picture, that’s been offset by positive news in the commercial construction sector, where large projects tend to skew comparisons.
The planning department had predicted a slight increase year over year, but with only two months remaining, some announced projects will likely carry over to next year’s figures, Snyder estimated.
That includes residential dollars toward a new proposed seniors housing project off Strachan Drive might not be processed until the beginning of 2019.
In that same category is most of the industrial permitting related to the Aurora Cannabis production facility. Only $2.5 million related to the facilities foundation is currently included in the figures, while most of the $130-million project will be processed after December.
For 2018 thus far, the total construction value permitted totals $96.1 million, compared to $104.9 million through 10 months last year.
Specific to October, five institutional renovations pushed the total above 2017 levels. In the month, 93 permits were estimated to be worth $5.8 million, up 20 permits and $1.35 million over October 2017.
While new construction remains slow, home renovations permits are up and homeowners are moving ahead on more substantial projects. With the number of alternation permits standing about steady the average cost of a renovation project rose by about 14 per cent to $14,800. New garage figures remained steady with last year showing 73 permits worth $1.5 million.