This year is likely a “wait and see” year for potential recording breaking building permit values in the city.
“If, late in the spring, the Bank of Canada begins to bring down interest rates I think we’ll likely see a strong summer and fall,” Ryan Smith, director of planning and development services, explained in a report to council on Monday (Jan. 6).
Smith added government government-supported projects, such as those identified through the Housing Accelerator Fund (HAF), will certainly be moving forward.
“That’s really the only way we’re going to achieve meaningful affordability in any projects right now is with government intervention in rental or market housing projects.”
He said residents can expect to see many more small-scale, multi-unit residential developments in the Kelowna housing market in 2024, as mandated by the province.
Smith said 3,934 residential housing units were permitted in 2023.
“Which is a huge number. There is going to be a large chunk, even though they’ve got a building permit, that do not move into construction for various reasons.”
However, he added that even if half of those units move forward they are within the needed number identified under the city’s Housing Needs Assessment, which is between 1,800 and 2,600 units a year.
Also worth noting Smith said, was that 434 single-family home applications were submitted which included 330 with secondary suites for the rental market.
He pointed out that not all building permits move into construction.
“Labour supply, materials, interest rates all of these things are making construction difficult construction right now specifically in the housing market.”
Kelowna saw a record year for building permits in 2023 with a value of $1.75 billion.
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