HPAC Magazine

Investment in Building Construction Continues to Increase

By Logan Caswell   

Construction HPAC General Human Resources Ontario Quebec Statistic Canada

The total value of investment in building construction increased 9.2% to $59.7 billion in the first quarter of 2022.

Statistics Canada has announced investment in building construction increased by 1.8% to $20.3 billion in March.  Gains were reported in both the residential (+1.7%) and the non-residential (+2.0%) sectors.

Single-unit construction continues to drive residential sector

Continuing to rise was residential construction investment which saw a sixth consecutive increase, up 1.7% to $15.1 billion. Ontario played a large part in this, contributing about three-quarters of the monthly increase, bringing the national total to just below the record high reached in April 2021.

Investment in single family homes increased 4.3% to $8.4 billion, with Ontario (+6.2%) leading the gains.

Multi-unit construction investment decreased 1.4% to $6.7 billion in March. This ended five months of consecutive growth for the component, as declines in six provinces more than offset the strong gains reported in British Columbia (+3.8%).

Non-residential investment continues to show strength 

Investment in the non-residential construction sector was up 2.0% in March compared with February, a ninth consecutive monthly increase. Quebec accounted for more than half of the gain in March.

Commercial investment gained 2.4% to $2.9 billion. All provinces reported growth, led by Quebec (+6.7%). A retail development in Mount Royal, Quebec was the largest contributor to the increase in this component.

Investment in industrial construction increased 1.9% to $910 million, with Ontario (+2.6%) and Quebec (+2.7%) contributing to the majority of the gains in March.

Institutional investment rose 1.1% to $1.4 billion in March, its third consecutive month of growth. Much of the increase in March reflected the early stages of a hospital project in Québec City.

First quarter of 2022 in review

The total value of investment in building construction increased 9.2% to $59.7 billion in the first quarter of 2022. Almost all of the first quarter’s overall gains were in the residential sector, which jumped 11.0% to $44.4 billion, while the non-residential sector rose by 4.3% to $15.3 billion.

Residential investment in the single-unit component rose 11.2% for the quarter to $24.2 billion, with Ontario (+12.6%) accounting for half of the quarterly change. The multi-unit component was up 10.9% with all provinces, except Saskatchewan, reporting growth compared with the fourth quarter of 2021.

Investment in the non-residential sector was up 4.3%, with all its sub-components increasing compared with the fourth quarter of 2021. The commercial component, which contributed the most to the non-residential sector, gained 5.1% to $8.5 billion, its fifth consecutive quarterly growth. Investments in the industrial component increased 6.1% to $2.7 billion, while the institutional component rose 1.5% to $4.1 billion.




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