Spring Residential Construction Industry Pulse Survey Summary

Executive Summary

 

To understand the impacts of global COVID-19 pandemic has made on our members’ business operations and future economic confidence, CHBA BC launched its first Economic Impact Survey in the Spring of 2020, which was followed by a subsequent survey conducted in the Fall of 2020. These surveys posed questions regarding permitting timelines, employment levels, and effectiveness of government supports, providing the association insightful metrics on how what challenges the residential construction industry faces in light of the COVID-19, and what kind of support are needed from the government during the disruption.

 

For this year, given the resiliency, the industry has demonstrated in light of the pandemic  CHBA BC conducted a third version of the survey that broadens its scope of questions to capture the business pressures of the industry as this time, and what their provincial association and government officials can do this time to alleviate them. The Spring ’21 Residential Construction Member Pulse Survey was distributed through our eight local associations and received over 150 valid responses.

 

Key Findings & Infographic

 

 

  • Most respondents considered themselves homebuilders (55%) followed by renovator (30%), developer (23%), energy advisor (18%), and supplier (9%).

 

  • 70% of respondents have seen their business and work activity increase from November 2020.

 

  • 45% of respondents expect to see an increase in their business and work activity in the future, compared to the last 6 months, with 44% believing that it will remain at the same level.

 

  • When asked which subjects were currently present challenges to your housing projects 73% indicated supply chain and construction material costs and 70% saying local municipal development and building approvals and permit issuance.

 

 

Survey Results

 

In comparing the business subsets from our Spring 2020 and Fall 2020 surveys with our Spring 2021 survey, we have found consistency in the sampling distribution of responses by HBA/local, approximately +/- 3% variation.

 

Please note that respondents were able to identify as more than one category subtype; therefore, percentages do not total to 100%.

 

As we are all aware, the residential construction industry has been at its busiest in years, reflected in housing starts, and this is only further confirmed by 70% of our member respondents indicating an increase in business activity from November 2020 – as shown above.

Following the previous question, where 70% of respondents noted an increase in business activity – 44% of respondents noted that they believe their business and work activity levels will remain about the same for the remainder of the year, while 45% anticipate an increase.

 

These two data sets reflect a welcome upward trend in our industry. Future surveys will help us evaluate how long-lived this trend will continue.

When asked which subjects were currently present challenges to your housing projects 73% indicated supply chain and construction material costs and 70% saying local municipal development and building approvals and permit issuance.

Approximately 60% of our respondents noted an increase in the length of time it takes for their permits to be approved since November 2020. This is following a continuing trend of permit delays reflected in our past two surveys where 70% of respondents noted an increase in delays in our Fall 2020 survey, and 50% noted increased delays in our Spring 2020 survey.

 

The permitting approval process by municipalities, along with their notable delays, has shown a significant negative impact upon and contribution to the issue of housing supply and affordability within British Columbia, as reflected by the Expert Panel on Housing Supply and Affordability’s Report.

Of the identified skilled trades, respondents have expressed challenges with securing carpenters (56%), drywall installers (26%), as well as roofers and electricians (both at 14%). General contractors, painters as well as energy advisors were cited as other workers difficult to secure for jobs at this time.



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