Building Permits Jump 10.4% in August

October 13, 2016

Municipalities issued $7.3 billion worth of building permits in August, up 10.4% from July. This marked the second consecutive monthly increase. The gain was mainly attributable to higher construction intentions in Quebec, Ontario and British Columbia.

The value of residential building permits was up 9.6% to $4.5 billion in August, following four consecutive monthly declines. Both residential components — multi-family and single-family dwellings — recorded gains. Six provinces posted increases, led by Ontario and British Columbia.

In the non-residential sector, municipalities issued $2.9 billion worth of permits in August, up 11.6% from July. The increase was mainly attributable to higher construction intentions for commercial buildings and, to a lesser extent, industrial buildings. Gains were reported in five provinces, led by Quebec, followed distantly by Manitoba.

Residential sector: multi-family dwellings record the largest increase

The value of permits for multi-family dwellings rose 14.7% to $1.9 billion in August. This was the third advance in four months. Higher construction intentions were reported in four provinces, led by British Columbia and Ontario. Alberta posted the largest decline.

In the single-family dwelling component, municipalities issued $2.5 billion worth of building permits in August, up 6.0% from July. The increase stemmed mainly from higher construction intentions in Ontario and Alberta.

Municipalities approved the construction of 16,544 new dwelling in August, up 5.9% from the previous month. The rise was mainly attributable to multi-family dwellings, up 7.9% to 10,557 units. Single-family dwellings increased 2.5% to 5,987 units.

Chart 2: Residential and non-residential sectors

Non-residential sector: higher commercial and industrial construction intentions

In the commercial component, the value of permits was up 18.3% to $1.6 billion in August, a third consecutive monthly increase. Higher construction intentions for retail complexes and recreational buildings contributed to the gain. Seven provinces recorded advances, led by Ontario, Quebec and Alberta.

The value of industrial permits rose 14.8% compared with July to $495 million in August. The increase stemmed from higher construction intentions for utilities buildings and, to a lesser extent, maintenance facilities. Five provinces reported gains, led by Manitoba and Ontario.

Institutional construction intentions fell 1.1% to $800 million in August. Lower construction intentions for medical facilities were mainly responsible for the decrease. Eight provinces reported declines, led by Ontario and Alberta. Conversely, Quebec recorded the largest advance, which was mainly attributable to educational institutions.

Provinces: Quebec, Ontario and British Columbia post the largest increases

The total value of building permits was up in eight provinces in August, led by Quebec, Ontario and British Columbia.

In Quebec, the value of building permits rose 20.6% to $1.4 billion in August, the third increase in four months. Gains were posted in every non-residential component, led by institutional structures. However, the value of residential building permits fell 3.1% in the province, with both residential components recording decreases.

The value of permits in Ontario increased 7.2% to $3.1 billion in August, a second consecutive monthly gain. All components registered advances, except institutional buildings, which had posted a notable increase in July. The overall rise was mainly attributable to higher construction intentions for multi-family dwellings, commercial buildings and single-family homes.

Following two monthly declines, the value of permits in British Columbia was up 15.9% to $1.2 billion in August. Higher construction intentions for multi-family dwellings more than offset decreases reported in every other component.

Conversely, Saskatchewan and Newfoundland and Labrador posted declines. In Saskatchewan, the value of permits fell 7.7% to $150 million in August. The decrease stemmed mainly from multi-family dwellings, which were down following five consecutive monthly gains. Newfoundland and Labrador reported a 23.1% drop in the value of permits, a third consecutive monthly decline.

Census metropolitan areas: Montreal records the strongest advance

In August, the total value of building permits was up in 22 of the 34 census metropolitan areas. Montreal reported the largest increase, followed by Toronto.

The value of building permits in Montreal rose 65.6% to $838 million in August, following three consecutive monthly declines. Higher construction intentions were reported in every component, led by institutional and commercial buildings.

In Toronto, the value of permits was up 9.7% to $1.7 billion in August, a third consecutive monthly increase. Higher construction intentions for commercial buildings, multi-family dwellings and single-family homes led the advance.

In contrast, the value of permits in Ottawa dropped 25.7% to $257 million in August, following a 60.9% increase the previous month. Decreases were widespread among all components, except industrial buildings, which recorded a 36.3% gain.

Source: Statistics Canada, www.statcan.gc.ca/daily-quotidien/161006/dq161006a-eng.htm.