Decline in Ontario residential construction dragging down nation
March 20, 2024 | By HPAC Magazine
Multi-unit family investment declined 4.5% in January, driven by Ontario where the pace of new construction starts in the province slowed.
Nationwide investment in building construction declined 0.9% to $19.7 billion in January, according to the latest report from Statistics Canada.
The residential sector declined 1.4% to $13.6 billion, while investment in the non-residential (industrial, commercial, institutional) sector edged up 0.2% to $6.1 billion.
The decline in residential building construction was led by a $228 million drop in Ontario (-4.1% to $5.4 billion) from the month prior. This decline was partially offset by increases in five provinces, led by Quebec (+$53 million to $2.5 billion).
Nationally, investment in detached single-family homes increased 2.1% in January, with eight provinces reporting gains for this component. Multi-unit family investment declined 4.5% in January, driven by declines in Ontario as the pace of new construction starts in the province slowed.
Investment in the non-residential sector edged up for the third consecutive month to reach a record high of $6.1 billion. Gains in institutional (+$32.3 million to $1.7 billion) and industrial (+$7.3 million to $1.3 billion) investments were largely offset by declines in commercial investment (-$26.2 million to $3.1 billion).
The decline in commercial investment for January represents the seventh consecutive monthly decline, with seven provinces contributing to the negative movement.
