Building permit investment sees a pop in October
December 8, 2023 | By HPAC Magazine
Largest gains were seen in the institutional building segment, while residential permit demand remained flat.
The total value of building permits in Canada increased 2.3% from September to $11.2 billion in October, with the non-residential sector proving the most vibrant.
The total value of non-residential sector permits (including institutional, commercial and industrial) increased 5.3% to $4.1 billion in October, with gains being concentrated in Ontario (up 16% to $2 billion).
The gains were greatest in the institutional component (+29.2% to $1.4 billion) with the largest permit issued for the construction of a new hospital wing in Toronto.
Construction intentions in the industrial component were up 11.9%, while the commercial component was actually down 10.5% compared with the month prior, its second consecutive monthly decline.
Commercial building permit values have been trending down since the record high of $2.9 billion in March of this year. Year over year, the value of commercial permits issued in October was down 11.9% versus October 2022.
In the residential sector, permit values were relatively flat, up only 0.6% in October, following a 2.8% gain in September. Positive residential investment intentions were in Alberta (up 14.8%), Ontario (up 7.4%) and Quebec (up 7%) with declines in the remaining seven provinces.
Across Canada, 18,100 new dwellings in multi-unit residential buildings and 4,600 new single-family dwellings were authorized.
