Investment in residential building construction soars in December 2020
By HPAC MagazineConstruction HPAC General commercial construction investment residential
Growth in the sector rose almost 2% and reached a record high of $11.1 billion.
In the latest data released from Statistics Canada, the total investment in building construction across all sectors increased 1.5% in December, this comes following three consecutive months of investment declines. The greatest growth was seen in investment in the residential sector, which rose almost 2% and reached a record high of $11.1 billion.
For December 2020, non-residential construction investment remained relatively unchanged at $4.4 billion for the third consecutive month. Ontario reported the largest gain—up 2.0% from November—but that growth was offset by declines in five provinces.
The new record high in residential construction investment saw eight provinces posting gains, with Ontario (+2.8%), Quebec (+3.1%) and Alberta (+4.6%) accounting for the majority of the growth. Newfoundland and Labrador posted a decline for the second straight month resulting from high-value renovation projects coming to a close.
In the residential sector, single-unit investment continued to show strength for the third straight month, up 2.6%, and nationally, multi-unit investment increased 1.2%.
Notable growth was reported in Ontario and B.C., attributable primarily to condominium and apartment building construction.
Fourth Quarter Results
The total value of investment in building construction edged up 0.3% to $46.2 billion in the fourth quarter, driven by gains in the residential sector (+5.0%), while the ICI sectors all showed declines [commercial (-13.4%), industrial (-6.4%) and institutional (-3.2%)].
For the final quarter of the year, investment in residential buildings reported a record, with both single-unit (+7.9%) and multi-unit (+2.2%) investment posting gains.