Multi-unit residential construction sees significant growth in September, all provinces report gains
November 20, 2023 | By HPAC Magazine
Manitoba posted its largest-ever recorded monthly increase in single family residential investment in September.
Statistics Canada reports that month-over-month investment in building construction increased 5.3% to $18.9 billion in September, with the residential sector soaring up 7.3% to $12.9 billion, while the non-residential sector was up only 1.2% to $6 billion.
The strong showing in residential investment was driven by Manitoba (up 33.6% to $102.2 million), Alberta (up 10.6%; +$164.6 million), Quebec (up 9.1% to $191.6 million), and Ontario ( up 6.7%, to $325.1 million).
Overall, single family home investment increased 6.4% in September, and after seven consecutive monthly declines Manitoba (up 58.5% totalling $78.2 million) posted its largest-ever recorded monthly increase in single family investment in September.
Multi-unit residential construction rose 8.2% to $6.6 billion in September, with all provinces reporting gains. Ontario (rising 7.3% to $180.2 million) led the way in total investment dollars, while Alberta ( up 21.6% to $141 million) saw its largest monthly increase in this sector since April 2018.
Nationwide investment in non-residential construction (institutional, commercial and industrial) was relatively flat in September compared with August. The slight increase (1.2%) was driven mainly by Ontario, which accounted for 72.8% of the sector gains.
Institutional construction investment rose 4.3% to $1.5 billion in September 2023. Ontario (+11.4%; +$58.7 million) led the way, with a large hospital renovation in Toronto and the construction of a correctional facility in Thunder Bay contributing to growth in the province.
Commercial construction investment edged down 0.2% to $3.2 billion in September.
And month-over-month industrial construction investment increased 1.2% to $1.2 billion for the month of September. Despite stabilizing in recent months, industrial investment was still up 16.2% year-over-year from September 2022.
Q3 Results
Despite a strong showing in September, across Canada overall investment in building construction fell 2.8% to $54.7 billion in the third quarter, the fourth consecutive quarterly decline.
The residential sector was down 4.4% to $36.7 billion in the third quarter compared with the previous quarter, while the non-residential sector rose 0.5% to $17.9 billion.
