Building permit numbers remain strong

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This article was published 11/01/2021 (1836 days ago), so information in it may no longer be current.

Building permit numbers were down in 2020, but Mayor Rick Chrest said a closer look reveals the sector’s perseverance.

There were 511 building permits issued in 2020 totalling $81.6 million, while 2019 counted 569 projects totalling $150.3 million.

The 2019 numbers were bolstered by a few “extraordinary, quite large projects,” Chrest said, adding that he doesn’t concern himself too greatly about ebbs and flows in the city’s overarching statistics.

These large 2019 projects include the likes of Maryland Park (approximately $18 million), the Koch Fertilizer plant expansion ($26 million), the new Holiday Inn Express ($12 million) and a $17-million chemical storage building at the Municipal Water Treatment Facility.

While some of these projects were completed in 2020, the permits were accounted for in 2019.

One key difference between 2019 and 2020 building permits is a significant jump in new residential units.

In 2019, 325 permits were taken out for residential properties, including those for 249 new units.

In 2020, the number of residential permits increased slightly to 354, but the total number of new units spiked to 475.

“Residential, you’re hoping, is a little more stable and measurable, so it was certainly good to see that stay strong,” Chrest said.

Included in statistics for 2020 were 24 new multi-unit dwellings totalling 337 units, which dwarfs the 15 multi-unit dwellings’ 145 units recorded in 2019.

“There’s a strong demand for rentals and condos, and affordability is still a consideration,” Chrest said, adding that multi-unit dwellings tend to be less expensive and therefore a great introduction to homeownership.

Although homeownership in Brandon remains an affordable option compared to most other jurisdictions in Canada, he said this fact is of little consolation for the first-time homebuyer.

Further, multi-unit dwellings are often desirable for seniors, and Chrest noted the services available in Brandon, including its health-care system, makes it an attractive destination for retirees.

Residential renovations remained fairly steady year over year, with 52 projects recorded in 2020 compared to 62 in 2019. With a total of 10, there were four more sheds built in 2020, six more garages (25 total), four more swimming pools (12), and 11 more accessory buildings (13).

People were stuck at home for much of the year, and Chrest said he heard numerous stories about people spending money on their homes instead of vacations they couldn’t go on.

“People went, ‘Well, the money we’d usually spend on vacation, let’s stay home and build a new deck, buy a hot tub or remodel a kitchen,’” he said, adding that this might have also translated into home sales, which were strong in 2020.

Last month, Brandon Area Realtors president Mandy King said 2020 had been a “really good year” as it related to residential sales.

She reported that house prices were up an average of four per cent year over year and overall sales were up approximately 10 per cent.

Excluding December, Brandon Area Realtors list 552 home sales in 2020 at an average sale price of $292,267. These exclude mobile homes and condos.

To the end of November, 91 condos were sold, with an average sale price of $260,863.

The building permit numbers tell a positive story, Chrest said, adding that it’s comforting to see the sector remain strong and keep people employed through the COVID-19 pandemic.

“The unemployment rate is higher than we’d like it to be, but this sector has held its own and probably increased, so that helps.”

The mayor said he’s optimistic the construction sector will remain strong in the coming months.

“It’s still pretty early, but anecdotally, the developers and builders I’ve talked to would feel like they’re hopeful it’s going to stay fairly buoyant through 2021.”

» tclarke@brandonsun.com

» Twitter: @TylerClarkeMB