As of June 30, the City had authorized the construction of 1,085 residential units, including 916 multi-family dwellings, a record pace for this time of year.
Part of the City Affordable Housing Strategy the goal is for 70% of new homes to be multi-unit buildings. In 2021, these units accounted for 76% of all residential permits in Nanaimo.
City Hall officials expect the housing density trend to continue.
“We’re definitely on track for that (70%) at this point in the year, I think we’re 84% multi-family as a percentage of units allowed… still to be determined obviously what this year ends with, but certainly a good start to the year on the multifamily side.
Holm said NanaimoNewsNOW inflation is also a major factor in the value of building permits, as it affects prices in almost every aspect of society.
“The cost of construction is higher now than it was this time last year or the year before, which will drive up the allowed construction value. This does not affect the number of units we report, but the allowable build value must account for inflation.
$68 million represents the total public investment so far this year, including $63 million for the construction of a new correctional center in Nanaimo. This project involves multiple permits with an estimated completion date of 2024.
The other $5 million in public investment comes in the form of infrastructure such as roads and upgrades to underground utilities, some of which are already facing delays due to budget overruns.
Holm said while they’re on track for a banner year right now, it’s hard to predict what will happen for the remaining six months of 2022.
“It’s an interesting time and there’s a lot going on in the world in terms of world events, economic pressures and inflation are obviously factors, as are interest rates.”
With a volatile market in play, Holm said he would be surprised if the second half of the year ended as strong as we started.
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