Residential key driver to building construction investment
March 10, 2021 | By HPAC Magazine
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.
