Intentions for constructing new dwellings dropped 4% in January, as tighter monetary policy push builders and potential homebuyers to the sidelines.
Latest data from Statistics Canada showed that the total value of building permits fell to 9.8% billion, with eight provinces reporting declines. The residential sector suffered the largest drop— falling 6.6% to $6.1 billion in January, while the non-residential sector remained relatively flat, rising 0.7% to $3.7 billion.
Construction intentions for multi-family homes were down 8.3%, largely due to a substantial decline in British Columbia, where permits plummeted a staggering 27.9%, or $301.2 million. Interestingly, though, the province of Manitoba noted a significant increase of 106%, or $63 million, in January. Permit values for single-family homes fell 4.4% with a notable drop in Quebec, where the figure slumped 13.5%.
The non-residential sector, meanwhile, saw permit values rise slightly by 0.7%, as an increase in the commercial component offset declines across both the institutional and industrial sectors.
Information for this story 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.
