Industrial Projects Lead Non-Residential Construction Intention Gains

April 22, 2024

Month over month, the total value of building permits in Canada increased 9.3% to $11.8 billion in February. The non-residential sector grew 12.3% to $4.7 billion due to the issuance of several major construction permits, while the residential sector increased 7.4% to $7.1 billion. Ontario (+21.7% to $5.0 billion) led the growth, with gains occurring across all components.

On a constant dollar basis (2017=100), the total value of building permits was up 8.5% in February, following a monthly increase in January.

Industrial projects lead non-residential construction intention gains

The total monthly value of non-residential permits increased 12.3% to $4.7 billion in February.

The growth was mostly attributed to the industrial component, which increased 57.8% to $1.3 billion in February. Permits for large industrial construction projects were issued across the country. They included permits for the construction of a new battery plant in Windsor, Ontario, a new dairy processing facility in Abbotsford, British Columbia, a new pea processing plant in Yorkton, Saskatchewan, and the expansion of an aluminum smelting facility in Saguenay, Quebec.

The monthly growth in the non-residential sector in February was also supported by the increase in the institutional component (+18.2% to $1.3 billion).

Ontario drives growth in residential construction intentions

The total monthly value of residential permits increased 7.4% to $7.1 billion in February. Ontario (+14.2% to $2.8 billion) contributed the most to the rise in value of both single-family and multi-family dwelling permits.

Intentions for residential construction growth were divided between single-dwelling (+9.6%; +$248.2 million) and multi-dwelling (+6.0%; +$239.3 million) permits in February.

In addition to Ontario, British Columbia (+5.9%; +$76.4 million), Quebec (+3.9%; +$44.2 million) and Alberta (+3.9%; +$41.7 million) were the primary contributors to the second consecutive monthly increase in the residential sector.

Across Canada, 16,400 new dwellings in multi-unit buildings and 4,600 new single-family dwellings were authorized in February. From March 2023 to February 2024, a total of 253,400 new units were authorized.

Source

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