Quebec Drives the Growth in Residential Building Construction in June, 2024
Investment in building construction grew 2.8% to $21.4 billion in June, after a slight increase of 0.8% in May. These increases partly reflect April’s record high of $13.4 billion in total building permits value, since investment levels for a given period are driven by permits issued in prior months.
The June increase in investment in building construction was primarily driven by the residential sector (+3.8% to $15.0 billion), while the gains in the non-residential sector (+0.4% to $6.4 billion) were modest.
Year over year, investment in building construction rose 10.0% in June, following a 7.0% increase in May.
On a constant dollar basis (2017=100), investment in building construction was up 2.6% to $13.0 billion in June, compared with the previous month, and 6.8% year over year.
Quebec drives the growth in residential construction in June
Investment in residential building construction rose by 3.8% (+$546.7 million) to $15.0 billion in June. Monthly increases were recorded in nine provinces and two territories, with Quebec (+$265.0 million to $3.3 billion) leading the national gains for the second month in a row. Ontario (+$73.2 million to $5.6 billion), British Columbia (+$58.9 million to $2.5 billion) and Manitoba (+$47.8 million to $0.5 billion) also recorded an increase in residential construction, while Nova Scotia was the only province to post a decrease (-$1.2 million to $468.0 million).
Overall, investment in multi-unit construction grew 6.0% (+$454.7 million) to $8.1 billion in June, driven by Quebec (+$247.6 million to $1.8 billion) and Ontario (+$134.7 million to $2.9 billion).
Single-family home investment was up 1.4% to $6.9 billion in June, following two consecutive monthly declines.
Non-residential construction edges up in June
Investment in non-residential construction edged up 0.4% (+$26.3 million) to $6.4 billion in June, led by growth in the commercial component (+$27.2 million to $3.2 billion). Meanwhile, investment in both the industrial and institutional components was virtually unchanged.
Investment in non-residential building construction, June 2024
Second quarter of 2024 marks fourth quarterly increase
Investment in building construction was $62.8 billion in the second quarter, up 0.4% from the previous quarter, and marking the fourth quarterly increase in a row. Year over year, investment in building construction grew 7.2% in the second quarter.
Investment in residential building construction increased slightly by 0.4% to $43.7 billion in the second quarter. Gains in the multi-unit component (+5.1%; +$1.1 billion) were tempered by declines in the single-family home component (-4.3%; -$923.1 million).
Investment in the non-residential sector edged up 0.3% to $19.1 billion in the second quarter, the 14th consecutive quarterly gain for the sector in Canada. An increase in the institutional component (+1.9% to $5.4 billion) was moderated by declines in both the industrial (-0.6% to $4.1 billion) and commercial (-0.2% to $9.6 billion) components.
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