A Slight Decrease in Residential Building Construction for August
November 4, 2024
Investment in building construction edged up 0.2% to $21.0 billion in August, after a 1.6% decrease in July. The residential sector edged down (-0.1%) to $14.6 billion, while the non-residential sector was up 1.0% to $6.4 billion. Year over year, investment in building construction grew 7.2% in August.
On a constant dollar basis (2017=100), investment in building construction was virtually unchanged at $12.8 billion in August, compared with the previous month, but grew 4.2% year over year.
A slight decrease in residential building construction
Investment in residential building construction edged down 0.1% (-$14.1 million) to $14.6 billion in August. Monthly decreases were recorded in four provinces, led by Quebec (-$126.4 million). These declines were tempered by increases in six provinces and the three territories, with Ontario leading the gains.
Single family home investment edged up 0.1% (+$9.0 million) to $6.7 billion in August, following a decline of 2.2% in July. Monthly declines in five provinces, led by Ontario (-$29.9 million), were offset by gains observed in the remaining provinces and the three territories.
Investment in multi-unit construction fell 0.3% (-$23.1 million) to $7.9 billion in August, which offset the slight growth in the single-family component. Declines were recorded in five provinces, with Quebec (-$121.9 million) leading the way and marking its second consecutive monthly decrease. These declines were mitigated by growth in Ontario (+$125.5 million), which recorded its third monthly increase in a row.
Non-residential investment reaches record high
Investment in non-residential construction increased 1.0% (+$63.2 million) to $6.4 billion in August, setting a record high level for the sector.
Institutional construction investment rose 1.3% (+$24.2 million) to reach a record high of $1.8 billion in August, driven by Ontario (+$18.3 million) and with increases also recorded in six other provinces and territories. Ontario recorded its 14th straight monthly growth in this sector.
The industrial component grew 1.9% (+$25.3 million) to $1.4 billion in the month, led by British Columbia (+$14.5 million). Ontario (+$11.6 million) and Alberta (+$6.1 million) also contributed to a rise in the industrial component.
Commercial construction investment grew 0.4% (+$13.7 million) to $3.2 billion in August, driven by British Columbia (+$12.0 million) and Ontario (+$11.5 million).
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