Value of building permits sees increase in June
August 10, 2023 | By HPAC Magazine
The two highest-valued permits in June were issued for the construction of new hospitals in Quebec and B.C.
The latest report from Statistics Canada shows how the total monthly value of building permits in Canada increased 6.1% in June to $11.6 billion when compared to the previous month. There was a significant 67.2% monthly increase (+$619.3 million) in the institutional component of the building sector, as two new hospitals were included.
The total monthly value of non-residential (institutional, commercial and industrial) permits increased 20.4% to $4.7 billion in June.
Although there was a decline in commercial construction intentions (-7.7%) they were offset by gains in the industrial (+51.0%) and in the previously mentioned institutional component.
The two highest-valued permits in June were issued for the construction of new hospitals in Vaudreuil-Dorion, Que. and Dawson Creek, B.C., which together totalled 58.6% of the total value of institutional construction intentions.
The total monthly value of residential permits declined a slight 1.8% across the country in June.
Ontario (-11.4%) contributed the most to the decline, falling off after the province posted strong volumes of large multi-unit projects in May.
Similarly, Saskatchewan (-51.4%) and New Brunswick (-20.5%) posted declines, mostly offset by gains in each of the remaining seven provinces.
Across Canada, permits for 22,000 new dwellings were issued in June.
The total value of building permits in the second quarter declined 1.0% from the first quarter to $32.2 billion.
Despite the overall decline, the residential sector broke a three-quarter slump, increasing 4.9% in the second quarter to $20.3 billion.
Year over year, the value of construction intentions in the residential sector remained below the level seen in the second quarter of 2022 ($24.2 billion).
Similarly, 64,400 dwelling units were created in permits issued in the second quarter of 2023, that’s a bump of 2.7% more than in the first quarter (62,700 units), with British Columbia leading the quarterly gains (+24.4%).
Nationally, new dwelling units created in the second quarter were 14.7% below the number of dwellings created in the second quarter of 2022 (75,400 units).
