In July, Canada experienced a 1.5% decline in the total monthly value of building permits, totaling $11.7 billion. Surprisingly, this dip occurred even as the residential sector reported a 5.4% monthly gain.
The residential sector’s upward movement in July was primarily led by Ontario, which saw a staggering increase of 23.9%, contributing $3.5 billion. This boost was attributed to both single-family and multi-family dwelling permits. Nationally, July became the third consecutive month of growth in single-family home permits, climbing 7.6% to reach $2.8 billion. This marked a shift in momentum, especially after a year that saw a decline in construction intentions for such homes.
It’s noteworthy that six provinces, namely Ontario, Manitoba, Nova Scotia, Saskatchewan, New Brunswick, and Prince Edward Island, showcased growth in residential permit values in July, with multi-family dwellings construction intentions at the helm.
However, July’s figures also presented a broader picture of a declining trend. Permits for 22,300 new dwellings were issued that month, leading to a cumulative total of 150,400 new intended units for 2023. This represents a decrease of 10.9% from the 168,800 units intended during the same period in 2022.
In stark contrast to the residential uptrend, the non-residential construction sector witnessed a downturn in July. Its total monthly value decreased by 11.5% to stand at $4.3 billion, driven partly by a decline following some high-valued hospital permits issued the previous month. The institutional component suffered the most, plunging 19.7% to $1.3 billion. Meanwhile, commercial construction intentions also slipped by 10.8%, and the industrial sector showed a slight decline.
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.
