Residential Construction Investment Continues to Decrease in September

EIN Building Sept 400

December 5, 2021

Investment in building construction declined 0.7% to $17.5 billion in September, continuing a downward trend that started in May. A decrease in the residential sector was partially offset by a small increase in the non-residential sector.

On a constant dollar basis (2012=100), investment in building construction decreased 1.5% to $12.0 billion.

Residential construction investment continues to decrease

Residential construction investment decreased 1.6% in September, with Quebec accounting for most of the decline. However, the investment in this component was 21.6% higher than the pre-pandemic value in February 2020.

Investment in single family homes edged down 0.6% to $7.0 billion, with declines reported in eight provinces. Conversely, Nova Scotia continued to show strength in this sector (+13.3%), with its fourth increase in five months.

Multi-unit construction investment decreased in seven provinces, down 2.9% nationally to $5.8 billion. The difference in value between multi-unit and single-unit investment had been narrowing for the past few years, but a noticeable gap has opened up since the onset of the COVID-19 pandemic.

Non-residential investment up across all components

Commercial investment grew by 1.8% to $2.6 billion in September, with Ontario and Quebec leading the way. Office building construction projects in Toronto and Ottawa led to gains in Ontario, following three consecutive monthly declines.

Investment in the institutional component rose 2.9% to $1.3 billion, with a 7.9% increase in Quebec. Strength in that province largely stemmed from educational building projects in the cities of Montréal and Laval.

Industrial construction investment edged up 0.1% to $824 million, with gains reported in five provinces. Saskatchewan showed the largest monthly percentage increase (+11.5%), reflecting investment in utility and agricultural buildings.

Overall, non-residential construction investment rose 1.8% to $4.8 billion. Despite eight increases since the beginning of the year, non-residential investment was 6.3% lower than pre-pandemic values.

Residential sector is behind the quarterly decrease

Total investment in building construction decreased 7.5% to $53.0 billion in the third quarter, following substantial growth over the previous four quarters.

Residential construction decreased 10.5% compared with the second quarter, with declines in both single- and multi-unit investment. All provinces posted declines, with the largest in Ontario and Quebec.

Non-residential investment increased 1.8% to $14.1 billion, the third consecutive quarterly increase. Institutional building construction in Ontario and Quebec led the way, partly reflecting increased investment in educational buildings.

Go HERE for more information

Related Articles


Latest Articles


Changing Scene

  • Federal Government Invests $1.2B to Build 84,500 EV Chargers by 2027

    Federal Government Invests $1.2B to Build 84,500 EV Chargers by 2027

    From mining, to manufacturing, to charging, Canadian businesses and workers are attracting historic investments in the electric vehicle (EV) supply chain. When electric vehicles are made from Canadian minerals, assembled by Canadian auto workers, and powered at Canadian-made chargers, we secure and create jobs, grow our economy, and keep our air clean now and into the future. Read More…

  • Applications Open for Nova Scotia Power’s 2023 Scholarship and Bursary Program 

    Applications Open for Nova Scotia Power’s 2023 Scholarship and Bursary Program 

    Applications are now open for Nova Scotia Power’s 2023 Scholarship and Bursary Program, and Nova Scotian students are encouraged to apply. The program is accepting applications until April 19, 2023. As part of its Diversity, Equity and Inclusion strategy, Nova Scotia Power is focused on supporting programs and initiatives that help remove barriers, advance DE&I education and awareness in Nova Scotian communities. Read More…

  • BCUC Approves Deferral Account for FortisBC’s Electric Vehicle Workplace and Fleet Charging Funding Program

    BCUC Approves Deferral Account for FortisBC’s Electric Vehicle Workplace and Fleet Charging Funding Program

    Recently, the British Columbia Utilities Commission (BCUC) approved FortisBC Inc.’s (FBC) application for a new deferral account to enable funding to organizations for the purchase and installation of Electric Vehicle (EV) charging infrastructure. Through FBC’s EV Workplace and Fleet Charging Funding Program, eligible organizations can request a one-time FBC funded contribution of $1,920 per Level 2 EV Charger, capped at seven chargers per site. Read More…

  • Parliamentary Secretary Julie Dabrusin Announces New EV Chargers in B.C. and New Single Window for ZEV Infrastructure Applications

    Parliamentary Secretary Julie Dabrusin Announces New EV Chargers in B.C. and New Single Window for ZEV Infrastructure Applications

    Reducing pollution from the transportation sector is critical to Canada achieving its climate targets. That’s why the Government of Canada is making it more affordable for Canadians to purchase, charge and drive electric vehicles (EV) across the country. Recently, Julie Dabrusin, Parliamentary Secretary to the Minister of Natural Resources and to the Minister of Environment and Climate Change, on behalf of the Honourable Jonathan Wilkinson, Minister of Natural Resources, launched a new, integrated, federal zero-emission vehicles (ZEV) infrastructure landing page. Read More…