A sharp downturn in construction in West Kelowna should be a warning sign to governments about the impact of their policies on home-building, a city councillor says.听
The year-over-year value of building permits in West Kelowna is down more than 65 per cent, from $148 million to $47 million.听
鈥淲hen we look at that it鈥檚 a really telling tale,鈥 Coun. Stephen Johnston said during Tuesday鈥檚 meeting. 鈥淭hat is a really significant reduction.鈥
Johnston, who works in construction, says the numbers accurately reflect what is happening in the industry. 鈥淲e鈥檙e seeing a real slowdown in the construction of single-family homes, duplexes, and even multi-family.鈥
鈥淚 think it鈥檚 really important for councils across B.C, and the provincial government, to start to look at the fact that, while we preach affordability and the creation of housing all the time, we also layer on excess regulation, red tape, bureaucracy and expense that directly counteracts the ability to create affordable housing,鈥 Johnston said.听
Other councillors also expressed concern about the significant slowdown in construction in West Kelowna, noting the city could receive far less in builders鈥 fees than previously anticipated for municipal budgeting purposes.听
鈥淭his is very, very concerning,鈥 said Coun. Carol Zanon. 鈥淧articularly if it continues, because we need that construction value to go up to get the development cost charges, because we need the money.鈥
If that revenue doesn鈥檛 meet previously-set targets, the municipality might have to consider raising taxes next year, Zanon said: 鈥淎nd then we get into a very vicious circle.鈥
鈥淚 don鈥檛 want to thank people for bad news, but I鈥檓 glad to see this, because definitely it鈥檚 a wake-up call,鈥 Zanon said.听
The current number of building permits and construction values in West Kelowna is 鈥渟hockingly low鈥, added Coun. Jason Friesen. 鈥淗opefully we鈥檙e going to do a turnaround here pretty quick.鈥
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