The building business was not booming in Kelowna during the third quarter of 2022.
Although 2022 remained a strong year, with planning permit values at more than $932 million to date, it is well off the pace of $1.1 billion in permits for the same period in 2021, which is the busiest year in the city’s history.
Director of Planning and Development Ryan Smith said last year was an anomaly as it was a COVID-19 rebound year and bucked the trend of what the city would usually see regarding development application statistics.
“There were fewer applications in 2018, again in 2019, and again in 2020,” he added. “We see 2022 again continuing the trend of the slow ease on volumes.”
Smith added the slowdown is expected to stretch into 2023, mainly due to the uncertainty caused by macroeconomic conditions in Canada, specifically rising interest rates.
While the number of building permits issued so far in 2022 is down, the value of those permits is higher.
However, Smith does see a positive in the slowdown.
“It may give staff time to work on projects that have been put off due to record high development activity.”