Building Permit Demand Declines in April
June 14, 2023 | By HPAC Magazine
Statistics Canada reports the total month-over-month value of building permits in Canada dropped 18.8% in April compared to March, marking the lowest level since December 2020.
Statistics Canada has reported that the total monthly value of building permits in Canada dropped 18.8% in April compared to the month earlier. The total value was $9.6 billion in April, the lowest level since December 2020.
Following a record high in March, the total monthly value of non-residential permits fell 34.6% to $3.4 billion in April. The drop was observed across all components but was most pronounced in commercial (-40.2% or – $1.1 billion) and industrial (-49.6% or -$663.8 million) construction intentions.
On a seasonally unadjusted basis, the average commercial permit was valued at $433,000 in April compared with $901,000 in March.
Similarly, the average industrial permit was valued at $413,000 in April compared with $1.7 million in March.
The lower average permit values show that the month-over-month decline in April is attributed to exceptionally high volumes of large-scale projects in March.
The total monthly value of residential permits declined 6.1% to $6.1 billion, the second consecutive monthly decline. Declines were posted for both the single-family and multi-dwelling components.
Ontario (down 10.5% or -$296.4 million) greatly contributed to the monthly decrease in the residential sector.
British Columbia (up 2.6% or +$35.1 million) and Saskatchewan (up 45.0% or +$15.2 million) were the two provinces to post monthly growth in residential construction intentions.
