Building activity in Kamloops is off to a strong start in 2026, but officials say the headline numbers are being driven largely by a handful of major projects rather than broad-based growth.

New figures from the City’s Building Inspection Division show nearly $21.1 million in construction activity across 68 permits in February, slightly ahead of the roughly $20.7 million recorded over 71 permits in the same month last year.

That brings the year-to-date total to nearly $38.8 million over 142 permits — narrowly surpassing the $37.5 million logged during the first two months of 2025, making it the busiest start to a year in the past decade.

However, Chief Building Official Marc Vere cautions against reading too much into those figures.

“Those numbers are really being led by a couple of big projects,” Vere said, pointing to a $9-million renovation tied to BC Transit on Ord Road and a roughly $6-million data centre development on McGill Road.

Together, those two projects account for about $15 million in activity.

“You take those away, we’re actually under last year,” Vere said. “It’s a steady start, but I wouldn’t call it a massive increase.”

Commercial and industrial lead the way

February’s totals were heavily weighted toward non-residential construction. Two industrial permits accounted for $9 million, while eight commercial permits added another $6.3 million.

On the residential side, activity was comparatively limited, with one single-family home permit valued at $1.3 million and five alteration permits totaling just over $1 million.

That imbalance reflects what Vere describes as a typical cyclical pattern.

“Residential drops and commercial picks up, and then it goes the other way,” he said.

Housing numbers improve — but questions remain

Despite a slow start for new home construction, the number of residential units approved so far in 2026 has increased significantly.

Seven units were approved in February — unchanged from the same month last year — but year-to-date totals sit at 43 units, up sharply from just 10 during the same period in 2025.

Still, Vere acknowledged the early months of the year are not always a reliable indicator for housing trends.

“There’s not a lot that happens in January and February,” he said, noting only a handful of single-family homes have been approved so far this year.

Forecasting challenges and economic pressures

Looking ahead, predicting how the rest of 2026 will unfold remains difficult.

Vere said the City relies heavily on development applications in the planning pipeline to gauge future activity, but those don’t always translate into actual construction.

“We don’t build those things, so we don’t know if they’re going to happen,” he said. “It’s a bit of a crystal ball.”

External factors such as fuel costs and material prices could also influence whether projects move forward.

“If something is right on the line of being profitable and costs jump 10 to 20 per cent, that could stop a project until the numbers make sense again,” Vere explained.

Transition to e-permitting continues

The City is also continuing its transition to an online permitting system, which officials say will eventually streamline the application process.

While the shift has come with some early challenges, Vere said it is not expected to impact overall permit volumes.

“The numbers coming in shouldn’t change — it’s just about how fast they move through the system,” he said.

The City is expected to further expand and eventually mandate the use of e-permitting as the system improves. Officials also noted there are currently a number of approved permits that have yet to be picked up, representing additional potential construction activity that may still materialize later in the year.

Strong 2025 sets the stage

The early 2026 figures follow a strong year in 2025, when Kamloops recorded its third-busiest year on record with just under $350 million in building permits.

Whether 2026 can match or exceed that pace will likely depend on whether more large-scale projects move from the planning stage into active construction in the months ahead.