A home under construction in Medicine Hat. According to the City , construction of new single-family homes was up 85 per cent over 2019 ( Bob Schneider/ CHATNewsToday)

By Tiffany Goodwein

Construction permits at five-year low but industry optimistic

Feb 12, 2021 | 6:30 PM

MEDICINE HAT, AB- It’s another sign of the impact of the pandemic here in Medicine Hat. Construction activity slowed to a five-year low, according to the City’s annual development report. In 2020, the city recorded $48 million in construction activity. That’s down from $91 million in 2019.

While construction activity was slower, the city said the numbers were better than anticipated.

“What we thought was interesting is the last year 2020, was only about 20 permits less than 2019, so it is still low, so it is much higher than we thought we’d get to when we are talking about a global pandemic,” said Kent Snyder, City of Medicine Hat’s GM of planning and development services.

The uncertainty of the pandemic also led to a shift in when people decided to build, according to the report.

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“Our two prominent spikes or levels of activity are in the spring and mid-summer. This year we only had one spike and it was in mid-summer. So we didn’t have that spring spike. Makes sense. That’s when we were all starting to talk about what is this pandemic and what does it mean for investment and development,” Snyder said.

The bulk of construction permits, over 80 percent went towards smaller projects like home renovations.

“We’ve seen anything from additions to create more space for families, to changing some of the layouts to include fitness areas to expanded refurbished kitchens because people are home and gathering around their kitchens more,” said Aaron Brost with Brost Developments.

New home construction permits were also up nearly 85 per cent compared to 2019, partly because of new developments like Coulee Ridge taking shape.

Those positive signs coupled with low-interest rates and provincial stimulus money has the industry remaining optimistic for the year ahead.

“There’s always going to be an opportunity no matter what. Previously the opportunities may have just come to you and fallen in your lap. Now you kind of have to get out there and find them a little bit more and be a little more assertive about getting the business,” said Guy Bellis, operations manager with Midwest Construction and Design.

The City is also maintaining an optimistic outlook for 2021.

“ We are expecting a recovery year. We would like to see higher numbers of permits, higher numbers of construction values but not anticipating a spike,” Snyder said.

A total of 259 residential permits were issued last year, followed by 59 non-residential permits.

Almost half of the permits, 47 per cent for residential, and 46 per cent for non-residential occurred in the City’s south zone.