HPAC Magazine

Building permit values trending up in Q1

May 13, 2024 | By HPAC Magazine

The total value of building permits in the first quarter of 2024 was up 3.7% over the previous quarter.

Month over month, the total dollar value of building permits in Canada decreased 11.7% to $10.5 billion in March.

Construction intentions for non-residential buildings declined 16.7% to $4 billion, while the residential sector decreased by 8.3% to $6.5 billion when compared with February. Declines were observed in all components except for the commercial component.

Yet, the total value of building permits in the first quarter of 2024 was $33.4 billion, a 3.7% increase from the previous quarter.

This represents a partial rebound from the fourth quarter of 2023, which was the lowest quarterly total value since the third quarter of 2021 ($30.5 billion).

The Q1 growth was driven by B.C. (+20.1%), which posted significant gains in the commercial and industrial components, and in the multi-unit residential component.

Despite quarterly gains, construction intentions in the first quarter of 2024 remained lower than the average quarterly levels of the previous two years.

Construction intentions in the industrial, commercial and institutional sector increased 6.9% to $13.0 billion in the first quarter, led by the commercial sector (+22.3%), which posted the highest level of the previous four quarters.

Growth was driven by permits for office buildings, and overall, nine provinces and territories reported increases in commercial construction intentions, led by Ontario (+34.8%), Quebec (+31.2%) and B.C. (+32.4%).

The value of residential building permits edged up 1.8% in the first quarter. Growth in multi-unit residential (+7.9%) was partially offset by declines in the single-family homes component (-6.6%).

Residential Ups and Downs in March

The month-over-month value of residential building permits across Canada decreased 8.3% to $6.5 billion in March, dragged down by Ontario saw declines in both single-family and multi-family dwelling permits (-13.7%).

Despite the overall decline, the residential sector grew in Quebec (+7.3%), Prince Edward Island (+70.4%), Saskatchewan (+10.3%), Newfoundland and Labrador (+7.7%) and Manitoba (+0.9%).

Across Canada, 16,800 new multi-unit dwellings and 4,200 new single-family homes were authorized in March. From April 2023 to March 2024, a total of 260,200 new units were authorized.




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