'Huge year' expected for construction as P.E.I. building permits soar

Even with the P.E.I. construction industry stretched to the limit, developers are filing building permits at increasingly high rates.

Permits filed in the first four months of 2019 passed a value of $102 million, 27 per cent above the pace set in 2018, and almost double the pace in 2017.

The Construction Association of P.E.I. has said the industry is running at full capacity, and has teamed up with the province to produce promotional videos to attract skilled workers.

Charlottetown Coun. Greg Rivard, chair of the planning committee, said with the city facing record low vacancy rates the activity is encouraging.

"We're having a banner year," said Rivard.

"It's a record-breaking year for the city for construction and permits that we're issuing to developers. So we're expecting a huge year this year for development, upwards of 1,200 new units."

P.E.I. permit values for multiple-dwelling buildings are 4.5 times what they were in 2017, and single-dwelling permits are up almost 50 per cent.

A complicated picture

But Rivard said it is difficult to say when all that building could start to have an impact on the housing market.

The population of the greater Charlottetown area is growing rapidly, with a growth of more than 7,000 people from 2015 to 2018, a 10 per cent increase. That trend is expected to continue. Conversion of units to short-term vacation rentals is also an issue, said Rivard.

Finally, with the construction industry facing a labour shortage, issuing a permit is no guarantee that something will be built.

"It's one of those questions that doesn't have a specific answer because there's so many different factors that play a role," said Rivard.

"There's no guarantee that they're going to be built. But you know it's certainly encouraging to know that they've been approved or permits have been issued."

But despite all the complicating factors at play, Rivard is hopeful new construction will begin to have an impact on the housing market in the next two years.

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