For the third consecutive month, building permits in Canada soared to yet another record, amid an ongoing housing boom that has persisted throughout the pandemic.
According to Statistics Canada, the value of building permits jumped 5.7% to $10.9 billion in March, as the residential sector continues to make unprecedented gains. Building permits in the residential category soared 15.9%, rising above $8 billion for the first time on record in March. Multi-family dwellings rose 24.5% from the month prior to $4.3 billion, largely due to a number of high-value permits being issued in the cities of Toronto, Burlington, and Vaughan.
Single-family homes, which have been at the forefront of the housing boom since the beginning of the pandemic, also noted significant gains. Building permits for this category jumped 7.6% to a record $3.8 billion, with the census metropolitan area of Oshawa contributing to over one-third of the increase.
The non-residential sector on the other hand, did not fare as well, reporting an overall decline of 15.6%. Statistics Canada reported that institutional permits dropped 33.5% to $732.1 million, with eight of the 10 provinces noting declines in this component. Commercial permits also decreased in March, falling by 14.6% to $1.5 billion— approximately 25% lower than the average monthly value recorded in 2019. The only component to report gains were industrial permits, which increased 16.4% to $650.5 million.
Information for this briefing was found via Statistics Canada. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.