Total Value of Building Permits Decreases in June
August 4, 2022 | By Logan Caswell
The total value of non-residential sector permits fell 10.4% to $3.7 billion, largely due to decreases in British Columbia.
(Photo provided by: Statistics Canada)
After a small increase in May, the total value of building permits in Canada declined 1.5% in June to $11.9 billion. Statistics Canada mention the non-residential sector as the main contributor to the decrease, which dropped 10.4% to $3.7 billion.
Ontario pushes up residential sector
The value of residential permits in June increased 3.1% to $8.2 billion nationally.
The value of multi-family building permits increased 6.5%, with Ontario (+24.8%) leading the way, due to several apartment buildings being built in Mississauga, Ontario.
Construction intentions in the single-family home component declined 0.6% due to large decreases in Manitoba and Newfoundland and Labrador.
Non-residential sector down in June
The total value of non-residential sector permits fell 10.4% to $3.7 billion, largely due to decreases in British Columbia’s commercial and institutional components.
Commercial permit values decreased 2.7%, with declines in eight provinces. In contrast, Ontario saw a notable increase (+37.5%), driven by a permit for a large office building in the city of Toronto.
Construction intentions in the institutional component fell 32.2%, following strong growth in May resulting from a large hospital permit in British Columbia.
Record high reached in second quarter of 2022
In the second quarter of 2022, the total value of building permits increased 2.8% from the previous quarter to $35.9 billion with gains in both the residential and non-residential sectors.
The residential sector increased 7.2% this quarter, with gains in the value of both single- (+5.0%) and multi- (+9.3%) family permits. British Columbia led the growth, followed by Alberta and Ontario.
The number of new residential units rose 6.0%, after a decline of 7.8% the previous quarter. This incline was driven by a rebound in the multi-unit component (+8.9%).
The non-residential sector decreased 5.1%, following a strong first quarter. The institutional component (-21.9%) dragged down the sector, following the issuance of two large hospital permits in the last quarter. Commercial permits declined 0.6%, while industrial permits posted gains of 11.4%.
