Residential key driver to building construction investment
By HPAC MagazineConstruction HPAC General Plumbing Commercial Buildings construction investment Institutional Buildings Residential Buildings
Total investment in building construction nationwide in January 2021 set a new record reaching $16 billion, a month-over-month gain of 2.8%.
Total investment in building construction in January 2021—much like the value of building permits issued reported earlier—set a new record reaching $16 billion, a month over month gain of 2.8%.
The increase in investment dollars is being driven by the residential sector, while non-residential construction has remained flat for four consecutive months.
Residential construction investment rose 3.9% to $11.6 billion in January, following a previous record high in December 2020. Gains were reported in every province except Manitoba, with Ontario representing the largest contributor, accounting for over one-third of the growth.
Single-unit construction saw its fourth consecutive monthly increase with investment up 4%. While Ontario was the leader in this segment, Nova Scotia and Quebec both reported record highs.
Multi-unit construction investment rose 3.7% month-over-month on growth in new construction and renovations in large condominium apartment projects. Multi-unit construction investment has been rising in Ontario from May 2020 to January 2021, with the majority of the investment reported in the metropolitan area of Toronto.
Non-residential construction investment held steady for the fourth consecutive month at $4.4 billion in January.
Institutional construction investment rose 0.6%, up in seven provinces.
Investment in commercial building construction edged up 0.2% nationwide.
Industrial construction investment dipped 0.4% to $804 million.