Residential construction in the Harbour City is riding an upswing out of the gates this year.
“This is getting into our busy season and the phone has been ringing off the hook for the past two months. It started a bit earlier and there seems to be no letting up at this point in time,” said Byron Gallant, owner of B. Gallant Homes and president of the Canadian Home Builders’ Association Vancouver Island, who has seen more inquiries for new homes than in the past two decades.
The Canada Mortgage and Housing Corporation reports a 19-per cent uptick in residential and multi-family housing built between January to the end of March this year, compared to the same time in 2015.
Aida Niavarani Zadeh, CMHC senior analyst for Vancouver Island, says builders are developing more because of a demand in the re-sale market and demand for new homes with lower number of inventory. The five-year average for an inventory of new homes or those recently completed and sold, is 98, but in 2014 Nanaimo saw only 47 and in 2015, 57.
Niavarani Zadeh said the sellers’ market has demand running ahead of supply due to migration from other provinces, such as Alberta, and stronger employment in Nanaimo supports demand for new units.
“I wouldn’t say it’s booming,” she said. “But it is stronger than what we have seen last year, just comparing the year-to-date numbers.”
Construction activity in the Harbour City has been on the climb since 2013, when the city saw building permits hit a 12-year low. Last year, there were 321 permits for single family homes, an increase of 10 per cent from 2014, and above average for the past decade. Developers also applied for more multi-family builds.
New construction starts were also up with 384 single family homes compared to 318 the year before and a total 466 multi-family starts, including 332 rental units, compared to 347 in 2014. So far, statistics show momentum has carried into 2016, but CMHC forecasted an overall decrease in new construction this year.
Gallant calls the construction business excellent and busy without a doubt. He sees indications it will continue.
“The concern going forward, of course, is being able to manage the volume that’s coming at us, sub-trades as well – their concerns, of course, are employees and skilled trades people,” said Gallant, who sees the biggest problem moving forward is the workforce with more people retiring than getting into it.
