Value of Building Permits Plummeted 17.1% in April

Value of Building Permits April 2020 400

June 1, 2020

The total value of building permits issued by Canadian municipalities plummeted 17.1% to $6.0 billion in April. The decrease was the largest decline since a similar drop in October 2008 during the financial crisis. When combined with the March decline, the value of building permits has fallen by 28.1% from February levels. 

Declines were reported in eight provinces, with the largest in Quebec (-34.1%) and Ontario (-20.0%). Although most municipalities were still issuing permits in April, Quebec’s decision to shut down non-essential construction activity due to the COVID-19 pandemic led to it posting its largest month-over-month percentage decline on record.

Record declines for single family permits 

The total value of residential permits was down in nine provinces in April, falling 14.2% to $3.9 billion nationally. 

Using comparable data available back to 2002, permits issued for single family dwellings fell 35.9% to $1.4 billion, a record month-over-month decline and almost double the next largest decrease. Prince Edward Island (-84.3%), Newfoundland and Labrador (-52.5%), Ontario (-50.8%), Manitoba (-37.1%) and Quebec (-29.4%) all recorded their largest month-over-month percentage declines in the current series. 

Multi-family dwellings was the only component to show an increase at the national level in April, up 4.8% to $2.6 billion. Increased building intentions in the census metropolitan areas of Vancouver, Toronto and Ottawa led to gains in British Columbia (+66.8%) and Ontario (+13.9%), which more than offset declines in six provinces. The gains in British Columbia returned the value of multi-family permits to more normal levels, following large drops in the previous two months. The decreases in February and March were the result of a large number of permits being pulled forward into January as builders looked to avoid a scheduled fee hike in Metro Vancouver.

Non-residential permits decline 

The value of commercial permits was down 21.5% to $1.2 billion in April with the largest decline reported in Quebec (-56.6%), setting another record month-over-month percentage decrease for the province.

Industrial permits fell 34.7% to $377 million following gains in March, with declines posted in six provinces.

Major projects in the form of schools and nursing homes helped drive gains for institutional permits in some parts of the country. However, growth reported in six provinces failed to outweigh sharp declines in Ontario (-46.2%) and Quebec (-28.2%), which pulled the national total down 10.5% to $533 million.

For more information on housing, please visit the Housing Statistics Portal.

To explore the impact of COVID-19 on the socio-economic landscape, please visit the COVID-19 dashboard.

Source: Statistics Canada, https://www150.statcan.gc.ca/n1/daily-quotidien/200527/dq200527a-eng.htm

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