According to a Building Activity Report presented at the August 10th Council meeting, building starts in the first few months of the year fell short of expectations, but that trend changed in the second quarter when building starts made up for lost ground.
At the end of June, issued building permits were slightly ahead of the first six months of 2025 in terms of volume, bringing the number of permits issued 2026 Year to Date to 5% higher than the previous year. The value of construction for those permits was reported to be 34% ahead of the 2025 value. Manager of Development Services, Kyle Phillips, indicated that the value of construction number is not a particularly reliable indicator of the value of the underlying construction projects as it is drawn from permit applications. Construction value on these permits maybe underestimated if residents are doing the work themselves or if they fear repercussions on their property tax assessments. In fact, property tax values that drive property tax assessments are not influenced by these applications. Changes in property values triggered by improvements are calculated by an independent provincial agency called the Municipal Property Assessment Corporation (MPAC).
The financial implications of new construction for municipalities has changed recently with the provincial decision to allow builders to defer the payment of development charges associated with their projects until the moment an occupancy permits for the projects are issued. Some projects that are funded by development charge revenue must be completed prior to occupancy, such as water and wastewater services and emergency services. The deferral option places financial pressure on host municipalities, forcing them to finance these projects before they receive the offsetting development charge revenue.