HPAC Magazine

Investment in Building Construction Decreases in June

Following a 3.0 per cent decrease in May, residential construction investment fell 5.8 per cent in June to $13.8 billion.

August 12, 2021   Logan Caswell

Investment in building construction across Canada decreased 4.5 per cent to $18.4 billion in June, marking back-to-back monthly drops thanks to the decrease in May.

Residential investment cools off for a second month

Following a 3.0 per cent decrease in May, residential construction investment fell 5.8 per cent in June to $13.8 billion.

Investment in single-family homes remained well above pre-COVID-19 levels, despite falling 7.3 per cent in June to $7.5 billion.

Multi-unit construction investment was down 3.8 per cent to $6.2 billion in June, with more than half of the provinces posting declines.

First Non-residential construction decline in six months

After posting slight increases for the last six months, non-residential construction investment edged down 0.4 per cent to $4.6 billion in June.

Commercial construction investment declined 1.0 per cent to $2.5 billion. The largest drop was from Ontario, down 2.2 per cent as projects in the cities of Ajax and Brampton began to slow down after peaking earlier this year.

Industrial construction investment was down 1.2 per cent to $825 million in June.

Institutional investment increased for the eighth consecutive month, up 1.3 per cent to $1.2 billion. Ontario led the way, advancing 2.8 per cent to $430 million.

Fourth consecutive quarterly increase

Total investment in building construction increased 7.3 per cent to $57.2 billion in the second quarter of 2021.

Residential construction surpassed $40 billion for the first time ($43.4 billion), with an increase of 9.3 per cent compared with the first quarter. The strength of the residential sector this quarter continued to stem from single-unit investment, specifically in the larger provinces.

Non-residential investment posted a slight increase in the second quarter, up 1.5 per cent to $13.8 billion, yet remained slightly below the same quarter in 2020. Institutional investment reported a 4.8 per cent increase, with the most growth coming from Ontario and Quebec.

Industrial construction investment was up 1.1 per cent despite declines in more than half of the provinces. Quebec and Ontario led the growth.

Commercial investment inched forward 0.2 per cent this quarter, remaining below pre-COVID-19 levels.

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