With recovery from the pandemic gathering steam, construction in Nanaimo is shaping up to rival the record level of activity seen in 2019.
A total of $96 million worth of construction got underway in the first two months of the year, based on approved building permits.
“That’s very significant — that’s on par with 2019,” Jeremy Holm, the city’s director of development approvals, told Nanaimo council during its regular meeting March 7.
The city saw a record $445 million in construction in 2019, based on approved building permits. Last year, the total came in at $271 million.
While a number of variables mean it’s too early to tell whether or not the strong start will lead to a strong year, Holm is optimistic.
“Obviously there is a lot going on in the world at this point in time, but we are predicting a lot of construction activity to continue throughout the year,” he said.
Most of this year’s activity is in multi-family projects, Holm said.
Nanaimo, like many B.C. communities, has a severe housing shortage. The city, with a population of more than 100,000, is experiencing steady growth but supply hasn’t kept pace with demand.
“We desperately need more housing in this community,” said Mayor Leonard Krog.
Two major planned communities, the Bowers district in the north end of the city, and Sandstone at the southern end, were approved by council this month and are anticipated to add up to 4,700 new homes over the next few years.
Last year saw 221 new single-family homes built — close to the 10-year average of 248 a year, Holm said. Of those, 64 per cent are now built with secondary suites.
Since 2005, when the city began allowing suites in single-family homes, more than 3,600 suites have been created, he said. “That is quite a substantial addition to the housing stock.”
The total number of new homes came in at 674 last year, including single-family homes, 220 multi-family units and 43 suites.
Nanaimo also saw an increase in publicly funded projects, including the two-storey Nanaimo Regional General Hospital intensive-care-unit project at $21.35 million; Nanaimo-Ladysmith School District projects, including a two-storey addition to Ecole Hammond Bay Elementary School at $12.3 million; and B.C. Housing’s new four-storey $12-million supportive housing project with 59 units on Nicol Street, set to open soon. Also underway is a $157-million replacement for the Nanaimo Regional Correctional Centre.
City hall has seen an increase in recent years in the number of residential projects seeking development permits.
Permit requests include an average of 50 to 60 residential units per permit, with many at 150 to 200 units, and some as large as 250 units.
Applications for a higher number of units are not unusual these days, but were uncommon a decade ago, Holm said.
