Value of Building Permits Rises 8.9% in May

Economy

 July 17, 2017

Canadian municipalities issued $7.7 billion worth of building permits in May, up 8.9% from April and the third highest value on record. The national increase was mainly the result of higher construction intentions for residential buildings, particularly in Ontario. Seven provinces registered gains in the total value of building permits in May, and every building component increased except institutional structures.

Residential sector: both multi-family and single-family components report higher construction intentions

The value of residential building permits issued by Canadian municipalities increased 10.8% from April to $5.0 billion in May. Six provinces registered gains, with Ontario reporting the largest increase, followed distantly by Alberta and British Columbia.

The multi-family component rose 15.0% to $2.3 billion, following a 6.9% gain in April. Construction intentions were up for every type of multi-family dwelling, led by row houses. Meanwhile, the value of single-family building permits rose 7.4% to $2.7 billion in May, stemming mainly from single homes in Ontario.

Canadian municipalities approved the construction of 18,037 new dwellings in May (up 7.2% compared with April), consisting of 12,032 multi-family units (+11.8%) and 6,005 single-family units (-1.0%). Ontario contributed the most to the increase in new dwellings approved in May, bringing the year-to-date number of new dwellings approved in that province to 35,860. In comparison, Ontario approved the construction of 30,661 new dwellings from January to May 2016.

British Columbia reported a second consecutive monthly gain in new multi-family units approved following a notable decrease in March 2017, while over 100 new multi-family units were approved in Prince Edward Island for just the fourth month since January 1989.

Non-residential sector: commercial and industrial components register increases

The value of building permits issued for non-residential structures rose 5.6% in May to $2.7 billion, marking a third consecutive monthly increase. Alberta and New Brunswick led the five provinces that posted gains in the non-residential sector in May.

The commercial component rose 12.9% in May to $1.5 billion, as increases were registered across several building categories, led by retail and wholesale construction intentions. Every province except Nova Scotia and Alberta reported gains in the value of commercial building permits.

The industrial component rose for a third consecutive month, up 9.8% in May to $545 million. This increase was mainly due to higher construction intentions for maintenance buildings in Ontario.

In contrast, the value of building permits issued for institutional structures fell 9.1% to $719 million. This followed notable construction intentions in April for government administration buildings and medical facilities.

Provinces and census metropolitan areas

The total value of building permits rose in seven provinces in May, led by Ontario and Alberta. Meanwhile, construction intentions were up in 22 of 36 census metropolitan areas (CMAs), led by Hamilton, Toronto, Calgary, and the Ontario part of Ottawa-Gatineau.

In Ontario, the gain in May stemmed primarily from the residential sector, the result of increases in both the multi-family and single-family components in the Toronto CMA. The industrial component in Ontario rose for a third consecutive month, with the gain in May mostly attributable to higher construction intentions for maintenance buildings in the Hamilton CMA. The commercial component, specifically the hotel and restaurant category, led the increase in the total value of building permits in the Ontario part of the Ottawa–Gatineau CMA.

The increase in construction intentions in Alberta in May stemmed from institutional structures, as well as multi-family dwellings. This gain coincided with a notable increase in the multi-family component in the Calgary CMA, but was moderated by the Edmonton CMA, which registered lower construction intentions in all building components for the month, except institutional structures.

Fort McMurray

May 2017 marks the one-year anniversary of the start of the 2016 Fort McMurray wildfire.

During this period, the municipality of Wood Buffalo issued record levels of both the unadjusted number of building permits and the unadjusted value of building permits for residential dwellings.

In the 12 months to May, 1,817 residential building permits worth $493 million were issued for Wood Buffalo, compared to an annual average of 1,311 residential building permits totalling $194 million since the beginning of the 21st century. In May 2017 alone, Wood Buffalo issued 305 residential building permits worth $92 million, the highest monthly levels for this municipality since January 2000.

Source: Statistics Canada, www.statcan.gc.ca/daily-quotidien/170706/dq170706b-eng.htm.

Related Articles


Latest Articles

  • IDEAL Canada Wraps up Eighth Season of Battle of the Schools

    IDEAL Canada Wraps up Eighth Season of Battle of the Schools

    This year, IDEAL Canada is celebrating 60 years of manufacturing in Canada. In the spirit of celebration, the company has given apprentices across the country another chance to show off their talents and celebrate their skills as burgeoning electricians with the Battle of the Schools. IDEAL awarded over $25,000 in cash in prizes to apprentices… Read More…

  • Ontario EV ChargeON Program Accepting Applications until January 31, 2024

    Ontario EV ChargeON Program Accepting Applications until January 31, 2024

    November 29, 2023 The province is accepting applications for the EV ChargeON program to build publicly accessible charging stations in communities with less than 170,000 people, as well as in any Indigenous community in Ontario. Eligible applicants include businesses, not-for-profit corporations, municipalities, Indigenous businesses, organizations and communities, and broader public sector organizations like hospitals and… Read More…

  • A Closer Look at ESA’s EV Charger Installation Blitz & EV Charger Considerations

    A Closer Look at ESA’s EV Charger Installation Blitz & EV Charger Considerations

    Earlier this year, the Electrical Safety Authority (ESA) conducted an EV charger installation ‘blitz’ as part of their campaign to educate homeowners and consumers, in an effort to improve EV charger installation safety in Ontario. Read More…

  • I Have Two Questions for You

    I Have Two Questions for You

    November 24, 2023 By Keith Sones, Valard EVP Strategy & Business Development I have two questions for you. First, how many people do you think you’ll meet in your life? It’s not that hard to determine, quite frankly. Yes, it requires a lot of assumptions to represent the “average” person, but it is possible. Before… Read More…


Changing Scene

  • Electrical Safety Authority Recognizes Safety Excellence in Ontario

    Electrical Safety Authority Recognizes Safety Excellence in Ontario

    December 7, 2023 Yesterday, December 6th, the Electrical Safety Authority (ESA) held its Annual Meeting and Ontario Electrical Safety Awards to celebrate leadership and electrical safety excellence. In addition to the awards, ESA’s Chair Christopher Hopper, and Chief Executive Officer, Josie Erzetic, highlighted ESA’s accomplishments from the previous year, and Patience Cathcart, Public Safety Officer provided key findings of… Read More…

  • ABB E-mobility Launches Terra AC Wallbox Solutions for Homes and Businesses in Canada

    ABB E-mobility Launches Terra AC Wallbox Solutions for Homes and Businesses in Canada

    December 6, 2023 ABB’s Terra AC Wallbox product family is now available through select ABB Installation Product electrical distribution partners across Canada. The solutions offer tailored, intelligent, and networked charging for business, home and a wide range of locations such as commercial or public facilities, workplaces, multifamily residences, and fleet parking lots. “The versatile e-mobility… Read More…

  • ECS contributes to UBC Solar’s “Brightside” Race Car Project

    ECS contributes to UBC Solar’s “Brightside” Race Car Project

    December 6, 2023 Electrical Wire Donation Powers Innovation and Education in Sustainable Engineering Electrical Cable Supply (ECS) is delighted to announce its recent contribution to UBC Solar – a student engineering design team at the University of British Columbia (UBC). In support of cutting-edge education and sustainable innovation, ECS has donated a diverse array of… Read More…

  • City Electric Supply Announces Acquisition of Coldbrook Electric Supply

    City Electric Supply Announces Acquisition of Coldbrook Electric Supply

    City Electric Supply (CES) is thrilled to announce the acquisition of Coldbrook Electric Supply, a respected independent wholesaler in Nova Scotia. Read More…