Despite a shutdown in March, construction in Okotoks didn’t dip below budgeted levels in 2020.
There was a decline in the number of housing starts from the year before, with the total number of builds capping at 184 in 2019 and 156 in 2020, but Rob Mueller, permit/inspections/assessment manager said the Town typically plans for an average of 150 starts in its budget.
“We’ve been using the 150 for several years, and 150 is a good projection to set a target budget,” said Mueller. “Even in slower times like this last year we’re still hitting a realistic budget of starts per year.”
Comparing quarter to quarter, he said levels were fairly consistent from 2019 to 2020. The notable change was in the third quarter, where the number of building starts dipped.
He said that is likely related to the shutdown during the second quarter.
“When COVID-19 hit everything shut down – the show homes shut down, so all the sales stopped,” said Mueller. “Everybody was kind of put on hold there for a while.”
It can take three to four months from the point of sale to the permitting stage, which is why the decline seen in March and April was felt in the fall, he said.
Despite fewer starts than 2019, he said the overall revenue for the Town was comparable in 2020 due largely to the number of home improvement projects taken on in the spring.
“Decks, sheds, basement developments, home improvement permits, things like that, we saw a significant increase in as compared to 2019,” said Mueller.
There were 346 permits for renovations and additions to private property, as opposed to 278 in 2019, he said.
It was a common sight across Alberta.
“Every municipality in the province saw an increase in the home improvement permits that were being issued for people to upgrade or do renovations to their residential properties,” said Mueller.
CAO Elaine Vincent said there was also a change on the assessment side. During a report to Okotoks council she provided stats on the assessment notices mailed out to homeowners on Jan. 4.
“Single-family residential properties decreased by an average of about 2.3 per cent year-over-year and the residential assessment decrease includes condominiums, which range from two per cent to four per cent,” said Vincent.
She said non-residential property value also declined by about two per cent.
Property values were calculated as of July 1, 2020 and include any physical changes and newly-constructed improvements up to Dec. 31.
Assessment was affected by COVID-19, she said.
“It’s a very dynamic marketplace right now and COVID does have that ability to influence that market,” said Vincent. “The market today may reflect values different than the 2021 assessment values, which are based upon that July 1 valuation date, which is legislated.”
