Value of August Building Permits Rose 0.4% over July

Economy Housing Permits

 

Oct 21, 2018

Canadian municipalities issued $8.1 billion worth of building permits in August, up 0.4% from July. Strength in the non-residential sector drove the increase, while the residential sector declined for the third consecutive month.

Non-residential sector: high value projects drive the increase

In the non-residential sector, $3.2 billion worth of permits were issued in August, up 8.8% from the previous month. Both the institutional (+25.8%) and commercial (+8.9%) components contributed to the gain, which was largely the result of the issuance of permits for a new hospital in Ontario and new office buildings in British Columbia.

Meanwhile, the value of industrial permits fell 5.9% in August to $677 million. This followed a 13.4% gain in July, as multiple permits were issued that month for transportation terminals and manufacturing structures in Ontario and Alberta.

Residential sector: third consecutive month of declines for both components

Municipalities issued $5.0 billion worth of residential permits in August, down 4.4% from July and marking the third consecutive monthly decline for the sector. Five of the six provinces that posted decreases had lower intentions for both single and multi-family construction.

The value of permits for single-family dwellings was down 5.2% to $2.2 billion, maintaining the general downward trend that began in January 2018. While eight provinces posted decreases in the month, Ontario and British Columbia contributed the most to the decline.

In the multi-family dwelling component, the value of permits fell 3.8% to $2.7 billion. Despite the monthly decline, the year-to-date value was $3.5 billion higher than the same time last year. Multi-family dwellings have represented over 70% of the total units for six of eight months so far this year. There are no previous years on record where multi-units exceeded that level.

Provinces and census metropolitan areas: British Columbia reaches another record high

In August, only three provinces reported gains, led by a record high in British Columbia. The largest decline occurred in Ontario, due to lower construction intentions in the residential sector.

The value of permits in British Columbia reached a record high of $1.8 billion in August, 12.8% above the previous record set in March 2018. In the non-residential sector, the value of permits passed the $600-million mark for the first time. Large projects for office buildings in the Vancouver census metropolitan area (CMA) were largely responsible for the growth. 

In the CMA of Vancouver, the value of permits rose 66.4% to $1.4 billion in August, accounting for three-quarters of the value in British Columbia. Although most of the increase came from the City of Vancouver, the City of Burnaby issued over $250 million worth of permits for apartment buildings, bringing the total to over $800 million for the year. 

In Ontario, all components declined in August, except institutional buildings. The value of permits in the residential sector dropped 13.9%. This followed several strong months in the multi-family dwelling component. At the CMA level, the value of residential permits in Ottawa fell 60.9% in August, following a 59.9% gain in July. This was due to the implementation of higher development fees in the city, as developers applied for permits ahead of August’s fee increase.

Source: Statistics Canada, https://www150.statcan.gc.ca/n1/daily-quotidien/181010/dq181010a-eng.htm

Related Articles


Latest Articles


Changing Scene

  • SurgePure Corporation Expands into the Mid-West with New Representation Partner, Advance Electrical Agency

    SurgePure Corporation Expands into the Mid-West with New Representation Partner, Advance Electrical Agency

    August 1, 2025 SurgePure Corporation is proud to announce its new partnership with Advance Electrical Agency, who will represent the company across Saskatchewan, Manitoba, and Western Ontario. Led by principals Darren Churchwell and Bob Fiesel , the Advance team is part of a well-established agency known for representing some of the most respected manufacturers in… Read More…

  • Munden Partners with Valid Manufacturing in Atlantic Canada

    Munden Partners with Valid Manufacturing in Atlantic Canada

    August 1, 2025 Munden Enterprises has announced that they are back in the custom enclosure business through a new partnership with Valid Manufacturing Ltd. Expect Canadian-made, engineered solutions for industrial, utility, transportation, wastewater, renewables, and beyond. Whether you need a bare enclosure or a fully assembled panel, Munden is here to help. Reach out to… Read More…

  • JEHS Joins Forces with NOARK to Deliver Smarter Electrical Solutions in Ontario

    JEHS Joins Forces with NOARK to Deliver Smarter Electrical Solutions in Ontario

    August 1, 2025 NOARK Electric is pleased to announce a new partnership with Cambridge, Ontario based manufacturing representitive, JEHS. This strategic collaboration will expand NOARK’s reach and customer support across Ontario and beyond, bringing reliable and innovative electrical solutions to a wider audience. With over 50 years of combined sales experience, JEHS brings a strong… Read More…

  • BC Hydro Making it Easier and More Affordable to Connect New Homes

    BC Hydro Making it Easier and More Affordable to Connect New Homes

    July 24, 2025 BC Hydro is supporting the construction of new housing developments in growing communities by advancing changes to streamline upgrades and reducing the cost of new customer connections to BC Hydro’s electricity grid. “As communities across B.C. grow, so does the need for essential housing. We are committed to ensuring we’re ready to… Read More…