Value of Building Permits Issued Declines 0.1% in June

Economy

Sept 17, 2018

Canadian municipalities issued $8.2 billion worth of building permits in July, down 0.1% from June. The decrease was mainly attributable to lower construction intentions in British Columbia.

Residential sector: lower construction intentions for multi-family dwellings 

The value of permits for residential buildings edged down 0.3% to $5.3 billion in July. The decline was mainly the result of lower construction intentions for multi-family dwellings, down 1.1% to $2.9 billion. The decrease in British Columbia (-$185 million) offset gains in seven provinces. 

The value of building permits in the single-family component was up 0.6% to $2.4 billion. Four provinces registered increases, led by Ontario and Manitoba.

In July, municipalities approved the construction of 19,824 new dwellings (+1.2%), consisting of 14,660 multi-family units (+3.7%) and 5,164 single units (-5.2%).

Non-residential sector: higher industrial construction intentions drive the increase 

The value of non-residential permits edged up 0.2% to $2.9 billion in July, mainly due to higher construction intentions in Quebec. Increases in the industrial component more than offset the declines for commercial and institutional buildings. 

In the industrial component, the value of permits rose 16.0% to $726 million, a third consecutive monthly increase. The gain stemmed from higher construction intentions for transportation terminals and communication buildings, specifically a $100 million permit for Radio Canada in Quebec.

The value of commercial permits fell 5.0% to $1.6 billion in July, mainly on lower construction intentions for hotels, warehouses and office buildings. Values were down in four provinces, with the largest declines in Alberta and Quebec. 

Within the institutional component, municipalities issued $600 million worth of building permits in July, down 2.0% from June. Of the three provinces that registered decreases in this component, Ontario reported the largest drop. Lower construction intentions for secondary schools mainly contributed to the decline.

Provinces and census metropolitan areas: British Columbia registers largest decrease

The total value of building permits was down in five provinces, with British Columbia and Ontario recording the largest decreases. At the same time, the value of building permits rose in 19 of 36 census metropolitan areas (CMA), with Montréal and Ottawa reporting the largest gains. 

In British Columbia, the value of building permits fell 11.0% to $1.4 billion. The decrease was mainly the result of lower construction intentions for multi-family dwellings in the CMA of Vancouver, following a record high in June. 

The value of permits in Ontario fell 2.4% to $3.3 billion in July. This followed three consecutive monthly increases. The value of building permits in the Toronto CMA fell 10.0% to $1.5 billion in July. 

In contrast, the value of permits in the CMA of Ottawa rose 53.9% to $416 million, the second highest value on record. Permits for residential construction rose 61.3% compared with June, coinciding with an increase in development charges slated for August 1, 2018. 

In Quebec, the value of building permits increased 14.7% to $1.7 billion in July. The industrial component posted the second-highest value on record, driven by a $100 million permit for a communication building in the CMA of Montreal.

Source: Statistics Canada, https://www150.statcan.gc.ca/n1/daily-quotidien/180906/dq180906a-eng.htm

Related Articles


Latest Articles

  • Declines in Ontario and Manitoba Construction Intentions Push Down the Non-Residential Sector

    Declines in Ontario and Manitoba Construction Intentions Push Down the Non-Residential Sector

    December 16, 2024 The total value of building permits issued in Canada decreased by $399.1 million (-3.1%) to $12.6 billion in October. This comes on the heels of a strong September, during which construction intentions rose by $1.3 billion to the second-highest level in the series. Despite the monthly decline in October, the total value of building permits… Read More…

  • Lighting Control Basics for Home Automation

    Lighting Control Basics for Home Automation

    By Matthew Biswas Do your eyes roll when you hear terms like Smart home technology?  Or are you a true believer?  As it turns out controlling electrical devices via low-voltage technology can be easier to implement and use than many of us thought. The Lutron Caseta system uses the internet and Radio Frequency to instantly… Read More…

  • Grounded in Ontario: The Future of Energy Storage Systems

    Grounded in Ontario: The Future of Energy Storage Systems

    December 16, 2024 Technical Advisor Trevor Tremblay explains why following best practices and relying on licensed professionals will ensure a smooth and secure transition when integrating this exciting new technology. Energy Storage Systems (ESS) are revolutionizing the way individuals and businesses manage energy, providing cost-saving opportunities, increased energy reliability, and a pathway toward sustainability. In… Read More…

  • 4 in 5 Canadians See Electrifying Public Transit as Key to Advancing Climate Action, Schneider Electric Survey Finds

    4 in 5 Canadians See Electrifying Public Transit as Key to Advancing Climate Action, Schneider Electric Survey Finds

    December 13, 2024 Schneider Electric has released new survey findings showing Canadians are increasingly concerned about the environmental impact of traditional public transit emissions. According to the survey, 83 per cent of Canadians recognize the need for electrified transit to support a sustainable future and are seeking actionable and innovative solutions to ease the nation’s… Read More…


Changing Scene