Construction activity is strong in Calgary with the first five months of 2023 showing increased building permits and total construction values.
There were 4,846 total building permits issued between January and April 2023 and while building permit volumes have decreased by 14 per cent from this time last year, total construction value has seen an increase of six per cent year-over-year, with a total value of $1.7 billion in construction value so far in 2023.
“Our construction value in 2023 demonstrates the confidence there is to invest in our city,” says Stuart Dalgleish, general manager of planning & development services. “With the construction industry contributing approximately 8.6 per cent to Calgary’s GDP, the number of projects being built is very healthy for our city, our economy and the future of Calgary.”
There were 1,327 permit applications submitted for commercial, industrial, institutional, and multi-residential projects from January to April 2023, down eight per cent from 1,440 applied for in the same timeframe in 2022. 2,865 permits applications were submitted for residential improvement projects, a seven per cent decrease from the same time period last year.
New home construction saw a 27 per cent decrease in permit applications, with 1,526 applications for single and semi-detached homes in the first four months of 2023, compared to the 2,095 applied for in 2022. Of interest, apartment building construction value saw a 170 per cent increase from $109 million in Q1 2022 to $293 million in Q1 2023.
“With existing housing supply levels remaining low and population growth in Calgary remaining steady, enabling access to housing supply remains our top priority,” says Dalgleish. “Though our total permit application volumes for single and semi-detached homes have decreased in the first four months of the year, construction value is higher than pre-pandemic levels.”
With construction remaining strong, 71, 658 building, trade and development inspections were completed from January to April 2023, up 18 per cent compared to the same period in 2022.
“In spite of procurement challenges and supply shortages impacting the construction industry both locally and nationally, our partners in development continue to ensure Calgary remains unwavering to growing, preparing for its future, and holding its status of one of the world’s most livable cities,” says Dalgleish.
