The Planning Manager for the Rural Municipality of Hanover says if not for 2021, they would be trending towards a record-setting year for construction activity.
From January 1st through September 30th of this year, the RM of Hanover issued 323 permits worth more than $59 million. During the same period a year ago, there were 375 permits for more than $63 million.
"Because 2021 was so incredibly good, it kind of skews how we look at 2022," explains Jeremy Neufeld. "2022 has been a very, very strong year and likely if not for last year, we would likely be setting records at this point."
Neufeld explains the year started off strong with March through May being the busiest months as far as volume of permits. He notes then starting in June they saw a slowdown in residential permits, dipping below Hanover's five-year average.
"That kind of aligns with some of the things we've seen in the marketplace," notes Neufeld. "Things like high inflation, increase in interest rates, so none of those things have really caught us off guard."
If the five-year average is any indication, Hanover is entering one of the busiest months of the year for residential permits being issued in the municipality.
In terms of new housing starts, there were 110 residential permits pulled during the first nine months of this year. That is up from 108 a year ago. The estimated value of those permits is also up, coming in at more than $38 million this year, compared to over $37 million in 2021.
Leading the way in new housing starts this year has been Mitchell (34) followed by Kleefeld (29), New Bothwell (26) and then Blumenort (5). There have been no residential permits taken out for Grunthal this year, while the rural area has seen 16 permits.
Neufeld says for New Bothwell to have the third most permits this year is surprising, considering there were only four during the same period a year ago. The opposite has happened in Blumenort, where that community has only five residential permits this year compared to 42 last year. He notes developments in Blumenort are pretty much full but there should be some available lots opening up for next year. And, though Grunthal has been shut out so far this year, Neufeld says there is a large development in that community which may see some building activity yet before 2023.