Bottom?

New homebuilding continues to languish in the County

Building in the County seems to have found a bottom—halting, if not reversing, several years of declining home starts in the County. From a high of $46.1 million in new building in the first half of 2008, the County saw just $21.7 million worth of work permitted in the first six months of 2012—a marginal increase over the $21.4 million permitted in the first half of last year.

New home starts continue to languish with just 29 permits for new homes issued to June 30. That said the first six months may not be a good predictor of the year. By the end of June last year the County’s building services department had issued just 33 permits for new homes—yet by the end of the year that number rose to 86.

Neighbouring markets, however, continue to compete more effectively for new home construction.

New home building in Quinte West cooled considerably in the first half of the year. This community had set a torrid pace for the past few years—but to June 30 this year, had issued permits for just 55 new homes, down about 30 per cent over last year’s starts.

Meanwhile, just east along the bay, Belleville saw a 14 per cent increase in new homes permitted in the first six months of 2012.

Despite the mixed performance in the first half of 2012, and despite levying much lower development fees upon new homes in their communities—both Quinte West (averaging $4,143 per new home) and Belleville ($4,893 per new home) generated more revenue from development charges for their municipal coffers than did Prince Edward County (charging $7,382 per new home with two or more bedrooms).