Moving towards a more sustainable level of construction activity, 2008 building permit values for The City of Calgary came in at $4.1 billion dollars, down 25 per cent from the record $5.6 billion set in 2007, but equal to the $4.1 billion five-year average (2004 to 2008) and well above the $3.1 billion 10-year average (1999 to 2008).

“The level of construction activity Calgary has experienced in recent years exceeds what is generally considered sustainable for a city of one million people,” says David Watson, General Manager, Planning, Development & Assessment.

For the year ending December 31, 2008, residential values are down 42 per cent to $1.5 billion compared to $2.5 billion in 2007, and non-residential values are down 12 per cent to $2.7 billion compared to $3 billion in 2007.

“The $2.7 billion in non-residential activity is notable, particularly when you consider that, without the combined value of The Bow and Eighth Avenue Place at $965 million, the 2007 total would have been $2 billion,” says Watson. “On the residential side, new applications have clearly slowed this year.”

The value of new single family projects was down 36 per cent in 2008, however single family improvements projects were up 24 per cent, indicating a move towards smaller home renovation projects.

For the year, there was an emphasis on major institutional and government projects, including the South Health Campus ($243 million) the Glenmore Water Treatment Plan Upgrades Program ($96 million) and the Calgary Board of Education Centre ($63 million). Overall, spending on new projects in the institutional sector increased nearly six-fold to $614 million from $106 million in 2007, with government spending tripling to $54 million from $18 million the previous year.

For the month of December, major projects included seven new schools (Cranston Separate, Evergreen Public, Evergreen Separate, Bridlewood Public, Saddle Ridge Public, Royal Oak Public, Martindale Starter), with a combined value of $63 million.

Building permits are a barometer of intentions in the construction industry and are not actual construction starts.