Building permits jump up thanks to one city
There were obvious signs that construction activity in Alberta was set to slow significantly this year. But, new building permit data reveal that Alberta’s construction industry may be a little busier in 2016 than many anticipated, especially in one city in particular.
According to Statistics Canada, a total of $1.6 billion (adjusted for seasonality) in building permits were issued from Alberta municipalities in February. Remarkably, that’s about 50 per cent higher than January, and about 40 per cent higher than the previous year. The cause? Alberta’s capital city.
Edmonton accounted for nearly 70 per cent ($1.1 billion) of the total building permits issued in February. Given economic sentiment at the moment, it’s surprising to see that the majority ($656 million) of the permits issued were for commercial projects within the city.
Permits given to Edmonton homebuilders increased, too. The total value of residential permits in Edmonton reached $356 million in February. Edmonton accounted for about 60 per cent of all residential building permits issued in Alberta in February. Despite growth in value of residential permits, they are still down significantly from the previous year (-31 per cent).
Regardless of the increase in overall permits, it’s important to remember that many towns and cities in Alberta are continuing to soften amid economic pressures. Unlike Edmonton, Calgary for example, has seen a significant reduction in building permit activity since last year (-40 per cent). In the coming months, it’s likely that we won’t see building permits continue on an upward trajectory.
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