Permit backlog leaves Whitehorse builders worrying about layoffs, decline in business

Local builders in Whitehorse say it's taking too long to get permits from the city, and if thebacklog isn'tresolved soonit could seriously impact the number of houses built in the Yukon's capital this year.

"We're nearing on everyone getting worried for winter and getting prepared for the fall and still the majority of people don't have permits and we're at a huge backlog," said Jake Schneider, the owner-operator of Kodiak Construction.

In late April, a group of four builders met with city officials to discuss concerns related to the backlog. The meeting included the city's chief building inspector and manager of the building department, said John Vogt, owner-operator of Vogt Homes.

Since then, Schneider says the issue has only gotten worse.

Builders say that the backlog became an issue this spring, after the city put in placenew requirements for building permit applications.

Rules in line with national code

According to Schneider, the requirements included listing all of the exact appliances going into the home prior to it being built, and asking home builders to complete a heat loss calculation before the house is constructed.

He added that when the city began asking for the metric, few contractors in Whitehorse knew how to do the calculation.

"It's also causing backlogs because now it's just a whole pile more stuff that the building inspectors have to check," Vogt said.

Mike Gau, Whitehorse's director of development services, said the requirements for building plans are in line with the national building code.

"The city can't change the national building code," Gau said. "The national building code ensures public safety and it protects future and current property owners."

Gau added that the city has been discussing some flexibility with builders on timelines for some of the newer requirements.

A backlog of approval

Vogt says that currently the city is approving, on average, one permit per day.

Gau estimates that the current wait time is eight weeks, which he admits is a few weeks slower than what the timing would be in a peak season.

He said that a "perfect storm" of events caused year's backlog, including losing twostaff members within the city's Land and Building Services building inspections team. The office is currently down to three staff members and has begun sourcing external support to conduct plan reviews.

Whitehorse homebuilders speak out against backlog of building permits

3 months ago

Duration 1:35

In Whitehorse, local homebuilders are speaking out about a backlog of building permits waiting for approval. They say the delay is impacting the number of houses that will be built this year. One builder says the city should go back to its previous permit process. Liam Baker has more.

"At the same time we started getting applications from twoland lotteries," Gau said. "So kind of a double wave of permits while we got short staffed and part of the problem is that building officials are very difficult to hire."

Gau said that the permitting office is receiving external support from threecity departments, as well as outside consultants who have assisted with plan reviews and permits.

According to a statement from the city, an "April 2023 land lottery made 117 lots available, though winners in that lottery were not able to access the lots in time to get permits for last year's construction season." In May of this year, another lottery was held, making available 86 single family lots, 47 townhouse lots, and twomulti-family lots.

Gau said that the city is currently developing an e-permit application, which would allow builders to apply online and see where the permit is in the approval process. He anticipates that the system will be built by the end of this year.

The Yukon Bureau of Statistics reports a total of 398 building permits were issued in the territory in the first half of 2024,down 38.7 per cent from the same period last year, while residential permits alone saw a decrease of 35.1 per cent.

Builders aren't the only section of the construction industry that are feeling the crunch. Material supply companies like KilrichBuilding Centreshave noticed a decline in business compared to previous seasons.

"The problem is that projects that we have slated for production end up getting postponed or cancelled at the last minute because builders haven't received the building permits that they had expected," said Rob Fordham, president of Kilrich.

A short window

Builders are also concerned the window for commencing new housing projects is steadily closing for the season.

"Usually you can get footings in without having to heat right up until Thanksgiving, but you get an early fall and the ground freezes and it's snowing and it's cold and you're done," Vogt said. "So things need to be moving real fast, real quick, or we're going to run out of runway."

Vogt said that at the rate in which permits are currently being processed, his company will be looking at layoffs midway through winter. He said that with the shortage of skilled labourers in Canada, construction firms in the Yukon are at risk of losing workers to other provinces.

"They will be going to Alberta, they'll go to BC, they'll go to Ontario," Vogt said. "Then they're not coming back next year if we fix the problem. We already have enough trouble finding employees in a standard year as it is."