The Municipality of Grey Highlands has experienced a significant drop in building activity in 2023.
At its meeting on Dec. 20, Grey Highlands council received the third quarter building report that showed the numbers for the summer months of July, August and September as well as the year-to-date stats.
At the end of Sept. 2023 Grey Highlands had issued 242 building permits with a total value of $45,199,247. These numbers were well off from the totals recorded at the end of Sept. 2022 of 426 permits for a value of $67,643,585.
The full report can be viewed here.
“Obviously the numbers are down. (Real estate) sales are down big time from what I was gathering,” commented Mayor Paul McQueen, who cited rising interest rates as a drag on the economy as a prime reason for the numbers falling off. “It’s probably a reflection on a lot of different factors. We’re into a different time.”
Grey Highlands staff told council there is no danger of the building department having financial difficulty due to the falling number of permits being issued. The department is fully self-sustaining (revenues from fees cover all expenses) and has a healthy reserve fund in place that is used to cover off lull periods when permit fees drop.
The municipality also currently has one position vacant in the department and will not fill it should the slowdown continue.
CAO Karen Govan said based on her discussions with the CAOs of other local municipalities, the drop in building activity is not unique to Grey Highlands.
“They’re all experiencing it. It’s across Grey County,” she said.
