Investment in residential construction trending down
August 18, 2023 | By HPAC Magazine
Nationwide single family home construction fell 5.7% in June with declines seen in eight provinces.
The latest report from Statistics Canada shows that investment in residential construction declined for the fourth straight month in June, falling 4.5% to $12.1 billion. The brought the overall investment in building construction (residential and non-residential) down 5.2% in the second quarter of 2023 (April – June) compared with last year. The decline was entirely due to the drop in residential construction investment (-8.2%).
In fact, residential construction declined for the fourth consecutive month in June with Ontario (-5.8%) accounting for most of the drop. Across the nation single family home construction fell 5.7% in June compared with May, with declines seen in eight provinces.
Multi-unit construction declined for the eighth straight month, falling 3.1% in June, to the lowest level since September 2021.
Investment in residential building construction, June 2018 – June 2023.
Investment in non-residential construction edged down only slightly 0.2% to $5.9 billion in June due to widespread declines in Quebec (-3.1% to $1.3 billion). Commercial construction was up 0.8% to $3.3 billion in June, while industrial (-1.4% to $1.2 billion) and institutional (-1.4% to $1.4 billion) construction both declined.
For the entire second quarter, investment in single family homes fell 10.5%, the largest decline since the second quarter of 2020. Multi-unit construction declined for the third straight quarter, falling 5.7%.
Investment in non-residential construction actually rose 1.8% to $17.8 billion in the second quarter, the 10th consecutive quarterly increase. Investment in industrial buildings rose 5.6% to $3.7 billion, while commercial construction increased 1.7% to $9.8 billion.
