Proposed four-storey commercial building on Hocking Avenue. (City of Chilliwack)
Proposed four-storey commercial building on Hocking Avenue. (City of Chilliwack)
Proposed four-storey commercial building on Hocking Avenue. (City of Chilliwack)
Proposed four-storey commercial building on Hocking Avenue. (City of Chilliwack)
Proposed four-storey commercial building on Hocking Avenue. (City of Chilliwack)
Proposed four-storey commercial building on Hocking Avenue. (City of Chilliwack)

Agriculture Investment Hits 7-Year High as Residential Construction Costs Soar

April 15, 2025

March 2025 was marked by contrasting trends in Chilliwack’s construction activity, with significant growth in agriculture overshadowed by a slowing housing sector. Here’s a look at the details and what they mean for our city.


Housing Sector Falls Short

In March, Chilliwack issued just 4 permits for 7 new single-family dwellings, totaling approximately $2.4 million. Additionally, 4 permits were approved for mobile homes, secondary suites, and temporary accessory dwellings (TADs) valued at $665,000. The townhouse project at 9451 Hazel Street saw 2 permits issued for 5 new units.

With the first quarter wrapped up, Chilliwack has permitted 156 housing units year-to-date, representing only 72% of last year's pace for the same period. Notably absent again this year are permits for duplexes, underscoring a persistent gap in "middle" housing options. More significantly, the average construction cost per housing unit has surged dramatically—from approximately $197,576 per unit in 2024 to $337,505 per unit in 2025. This stark increase highlights a critical challenge: while fewer housing units are being built, the overall cost of construction continues to climb significantly, exacerbating Chilliwack’s housing affordability crisis. Though the exact size and quality differences between projects aren't detailed in the available data, the trend clearly indicates rising costs.


Commercial Growth Continues

The commercial sector fared better, with 12 permits totaling $2.74 million. Key projects include:

  • A substantial tenant improvement for an office in the stunning new Benchmark Building at 45890 Hocking Avenue valued at $960,000.
  • An office for a light industrial business at 44565 Yale Road worth $1 million.
  • Another office space at 108-5535 Vedder Road valued at $250,000.

Compared to March 2024, commercial permits have increased slightly, from 9 to 12, while the total area permitted nearly doubled—from 139 to 281 square meters. The Emil Anderson Construction’s Benchmark Building remains a significant contributor to Chilliwack's commercial development momentum this year.


Agricultural Investments at 7-Year High

Agriculture has emerged as a major highlight for March, with 9 permits totaling $6 million issued for animal barns, a greenhouse, machine storage, and other storage buildings. This reflects a remarkable increase, with total agricultural permit values nearly tripling from last year’s $3.35 million to a 7-year high of $11.34 million year-to-date.

The notable spike in agricultural investments underscores the ongoing strength and economic importance of Chilliwack’s farming industry. Given current uncertainties in trade conditions, especially with the United States, these developments reinforce the critical need to preserve agricultural land as a cornerstone of local sustainability and economic resilience.


Overall Outlook

March's permit numbers reveal a city experiencing mixed fortunes—robust investment in agriculture contrasted by slower residential growth and sharply rising construction costs. Moving forward, it’s clear Chilliwack will need strategic planning and targeted solutions to address affordability and housing supply challenges while maintaining the vitality of its commercial and agricultural sectors.

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