Ontario’s Multi-Unit Component Drags Down Residential Sector in October 2024

January 6, 2024

Overall, investment in building construction decreased 1.1% (-$243.3 million) to $21.4 billion in October, after a 2.6% increase in September. Year over year, investment in building construction grew 3.4% in October.

In October, investment in the residential building construction sector decreased by $312.3 million to $14.9 billion, while investment in the non-residential sector rose by $69.0 million to $6.5 billion.

Investment in multi-unit construction was the only component to post a decrease (-5.1%; -$423.2 million) in October, dragging down gains posted in the other components.

On a constant dollar basis (2017=100), investment in building construction decreased 1.1% compared with the previous month to $12.9 billion in October, but was up 0.3% year over year.

Ontario’s multi-unit component drags down residential sector in October

Investment in residential building construction declined 2.1% to $14.9 billion in October. Monthly decreases were recorded in six provinces and two territories, led by Ontario (-$315.8 million), British Columbia (-$67.7 million) and Nova Scotia (-$42.6 million). These declines were moderated by upward movement in four provinces and one territory, with Quebec (+$76.5 million) leading the gains.

Investment in multi-unit construction was down 5.1% to $7.8 billion in October, following the record high of $8.2 billion reached in the previous month. The monthly decline in October was driven by Ontario (-$434.9 million), marking its first decrease after four consecutive monthly gains.

Single family home investment rose 1.6% to $7.1 billion in October.

Non-residential investment increases in October

Investment in non-residential construction increased 1.1% (+$69.0 million) to $6.5 billion in October.

The industrial component increased 1.9% (+$25.9 million) to $1.4 billion in October, with Ontario (+$15.0 million) and Manitoba (+$14.6 million) leading the way. These gains were moderated by declines in four provinces and one territory.

Commercial construction investment edged up 0.3% (+$11.1 million) to $3.2 billion in October. Gains in Ontario (+$26.2 million) were tempered by declines recorded in seven provinces and two territories.

In October, institutional construction investment rose 1.8% (+$32.0 million) to $1.9 billion, with eight provinces and three territories posting increases. Only Quebec (-$5.2 million) and New Brunswick (-$0.7 million) recorded decreases in institutional construction investment in the month.

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