Residential Building Permits Stall Despite Monthly Increases in Seven Provinces for June

August 31, 2023

The total monthly value of building permits in Canada increased 6.1% in June to $11.6 billion, with a notable 67.2% monthly increase (+$619.3 million) in the institutional component.

On a constant dollar basis (2012=100), the total value of building permits went up 7.0% to $6.8 billion.

Hospital construction intentions lead gains in non-residential permit values

The total monthly value of non-residential permits increased 20.4% to $4.7 billion in June. Declines in the commercial construction intentions (-7.7% or -$176.0 million) were more than offset by gains in the industrial (+51.0% or +$349.9 million) and institutional (+67.2% or +$619.3 million) components.

The two highest-valued permits in June were issued for the construction of new hospitals in Vaudreuil-Dorion, Quebec and Dawson Creek, British Columbia, which together totalled 58.6% of the total value of institutional construction intentions.

Residential permits stall despite monthly increases in seven provinces

Residential permits stall despite monthly increases in seven provinces

The total monthly value of residential permits declined 1.8% to $6.9 billion in June. Ontario (-11.4% or -$358.1 million) contributed the most to the decline, falling off after the province posted strong volumes of large multi-unit projects in May. Similarly, Saskatchewan (-51.4% or -$58.5 million) and New Brunswick (-20.5% or -$20.7 million) posted notable declines, mostly offset by gains in each of the remaining seven provinces.

Across Canada, permits for 22,000 new dwellings were issued in June.

Second quarter of 2023 declines compared with first quarter of 2023

The total value of building permits in the second quarter declined 1.0% from the first quarter to $32.2 billion, as the non-residential sector fell 9.6% to $12.0 billion, following the first quarter’s record high for the sector.

Despite the overall decline, the residential sector broke a three-quarter slump, increasing 4.9% in the second quarter to $20.3 billion. Year over year, the value of construction intentions in the residential sector remained below the level seen in the second quarter of 2022 ($24.2 billion).

Similarly, 64,400 dwelling units were created in permits issued in the second quarter of 2023, 2.7% more than in the first quarter (62,700 units), with British Columbia leading the quarterly gains (+24.4% or +2,700 new units). Nationally, new dwelling units created in the second quarter were 14.7% below the number of dwellings created in the second quarter of 2022 (75,400 units).

To explore data using an interactive user interface, visit the Building permits: Interactive Dashboard.

For more information on construction, please visit the Construction statistics portal.

For more information on housing, please visit the Housing statistics portal.

Recommended Reading:

Residential Construction Down for Eight Provinces in April, Non-Residential Down after Record March

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