Decline in Investment in Single-Family Homes Moderates the Growth in Residential Construction for May

July 19, 2024

Month over month, investment in building construction edged up 0.8% to $20.8 billion in May, rebounding from a 2.0% decrease in April. Both residential (+0.9% to $14.4 billion) and non-residential (+0.6% to $6.4 billion) sectors rose slightly in May.

On a constant dollar basis (2017=100), investment in building construction was up 0.9% to $12.7 billion in May.

Decline in investment in single-family homes moderates the growth in residential construction

Investment in residential building construction rose 0.9% to $14.4 billion in May. Monthly increases were observed in five provinces and territories, led by Quebec (+$178.3 million to $2.9 billion) and Alberta (+$26.3 million to $1.8 billion). These gains were partially offset by losses in Ontario (-$30.2 million to $5.6 billion), British Columbia (-$22.6 million to $2.5 billion) and the remaining six provinces and territories.

Overall, investment in single-family homes fell 1.3% to $6.8 billion in May, the second monthly decline in a row. Declines were recorded in 9 out of 13 provinces and territories in May, led by British Columbia (-$67.4 million to $833.2 million).

Multi-unit construction investment grew 2.9% (+$215.4 million to $7.6 billion) in May, driven by Quebec (+$189.4 million to $1.6 billion).

Investment in non-residential construction edges up in May

Investment in non-residential construction rose slightly in May, increasing 0.6% to $6.4 billion. Growth in both the commercial (+$28.9 million to $3.2 billion) and institutional (+$17.3 million to $1.8 billion) components was tempered by investment declines in the industrial component (-$6.2 million to $1.4 billion).

Notably, the institutional component marked its 11th straight monthly growth in May, while commercial construction investment recorded its first increase since October 2023. British Columbia led the monthly growth in both the commercial (+$29.6 million to $565.8 million) and institutional (+$13.0 million to $326.5 million) components in May 2024.

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