New home construction has continued to be the key driver in the city’s building permit figures.
As of the end of August, permits for $57.8 million worth of new homes have been taken out, according to a report from city hall, accounting for nearly 40 per cent of the $147 million reached for all construction in the city by that point.
However, at 104 the number of permits for new homes remained essentially the same as it has over the last three years, Canadian Homebuilders Association - Northern B.C. past president Jody Tindill noted.
Nonetheless, she said the market seems to be in reasonable shape with builders “very busy gearing up for winter.”
“We had a shorter building season this year due to a persistent winter and it put extra pressure on the April-September months,” she said. “We should see more permits in October as is typical for builders to get foundations in earlier to start heating them for the winter builds.”
But she also said more home buyers are finding new homes are out of reach due to rising costs, changes to lending rules and increasing interest rates. She said more new homes are holding secondary suites to act as a mortgage helper.
And while she welcomed the LNG Canada project, saying Prince George stands to benefit, it will also further heighten a demand for skilled labour already at a premium due to Site C, several large multi-family projects at once in P.G., and other industrial opportunities in the region.
“The residential construction industry is suffering with a shortage of all trades due to these projects,” Tindill said. “This may slow production in the short term until the labour market adjusts or some of the larger projects move into other phases.”
