City of Calgary residential building permit applications down, construction value up

The City of Calgary says demand for construction continues to be strong despite a year-over-year decrease in residential building permits issued.

In the first six months of this year, the city says it received 8,206 residential building permit applications and 1,686 building permit applications — seven per cent less than last year.

However, the city says construction value increased by 13 per cent over last year from $2.63 billion to $2.98 billion.

Calgary cited Statistics Canada in its announcement, saying the database determined the city’s construction value was responsible for an eight per cent increase to Alberta’s permit values in the first five months of the year.

The agency says, “This increase offset a downturn in other metropolitan centres and propelled Alberta to the strongest position for building permit values in Western Canada.”

“The values we are seeing are a promising indication that developers are committed to building more homes for Calgarians, both those living here today and the many thousands we expect to welcome in coming years,” Stuart Dalgleish, general manager of planning and development services with the city said in a news release.

“While our permit volumes are slightly lower than the previous year, the notable uptick in construction value highlights the quality and scale of projects being built.”

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According to the city, five more downtown office-to-residential conversion projects received funding in April.

The goal of these projects is to provide homes for more than 1,000 Calgarians, eliminate 500,000 square feet of unneeded office space, and improve the vibrancy of downtown, it adds.

The top construction projects completed in Calgary during the second quarter of 2023 include the 1.2 million square foot Amazon warehouse facility.

Meanwhile, the city’s release comes on the heels of a report from the University of Calgary School of Public Policy, which collected data on permits issued in Okotoks and Cochrane.

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It states that Cochrane built triple the amount of housing Okotoks did in the last 10 years, and, on average, issued five residential building permits for every two issued in the town to the south.

The variety of housing in Cochrane is also greater, the report states, with multi-family dwellings representing around 46 per cent of new housing starts compared to 16 per cent in Okotoks.

However, the School of Public Policy says the municipal governments are thought to hold the greatest influence on housing costs in their communities through zoning regulations.

These regulations determine the type of housing that can be built, and building permits, with the latter impacting construction timelines and non-material costs of housing.

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Canada’s population hit 40 million people this summer, and the report states Calgary is the fastest-growing city in the country, with a population of more than one million people.

More people moving to Calgary, and Alberta, puts further strain on the housing supply and may force local policymakers to change how housing is approved, the report says.

Calgary’s permitting rates are currently in line with those in Okotoks, “but Cochrane provides an example that policymakers may choose to follow,” it adds.

More information on the city’s building permits can be found online, and the report from UCalgary can be found on its website.