Construction activity is slowing down in Summerland, according to the latest building permit statistics from the municipality.
A total of 77 building permits, with a construction value of around $21 million, were issued in Summerland in May and June.
In May, 63 permits were issued, with a total construction value of $19,516,000. These included 46 permits with a total construction value of $18,319,000 for a cluster housing development at 3406 Landry Cres.
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In June, the activity slowed considerably as 14 building permits, with a construction value of $1,436,000, were issued that month.
“This is the first sign in the district of the impact rising interest rates is having on the ability of new construction projects to move forward in the community,” Brad Dollevoet, acting chief administrative officer, said in a report to Summerland council.
“Access to financing is tightening in the development industry and as a result, some projects are being put on hold rather than moving forward with construction, including smaller projects such as renovations and additions.”
From January to June, the municipality has issued a total of 137 building permits, with a total construction value of $33,306,000. This is more permits and a higher construction value than during the same period in any of the past five years in Summerland.
In all of 2021, a total of 203 building permits were issued in Summerland. The construction value of these permits came to $59,775,300.
“Planning applications are indicating that larger projects are still moving forward in the community, which may contribute to larger construction value amounts, but it is expected the number of building permits will continue forward at a lower pace,” Dollevoet said.
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