Building Permit Values Rise 10.5% in May

The value of building permits rose 10.5% to $10.5 billion in May, largely due to a substantial increase in construction intentions in Ontario.

According to Statistics Canada, the total value of residential building permits topped $6.8 billion in May, marking an increase of 8.5% month-over-month with Ontario contributing 45.8% of the total value. Nationally, there were 3,800 permits issued for single-family homes, and 17,700 permits for multi-unit buildings.

The province of Ontario reported a 16.3% increase in residential building permit values from the month before, New Brunswick saw a 27.2% increase, while permit values in Quebec rose 10.8%. Both Alberta and British Columbia witnessed modest gains of 4.7% and 3.7%, respectively.

Non-residential permits saw total values rise 14.2% to $3.7 billion, thanks to a 45.8% surge in commercial permits that was able to offset the $251.3 million decline in the institutional component. Still, despite May’s positive monthly increase in construction intentions, building permit values slipped 11.2% compared to one year ago.

Information for this story was found via Statistics Canada. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.