The value of Canadian building permits issued by municipalities decreased 1.9 percent to C$6.8 billion (US$5.2 billion) in May, according to Statistics Canada. The decrease was largely the result of lower construction intentions for commercial buildings in Quebec and Ontario, and single-family homes in Ontario.
The value of non-residential permits fell 3.3 percent to C$2.5 billion (US$1.9 billion) in May, following a 1.9 percent increase in April. The decrease resulted mainly from lower construction intentions for commercial structures.
In the residential sector, the value of building permits was down 1.1 percent to C$4.3 billion (US$3.3 billion), following a 0.9 percent drop the previous month. The increase in the value of multi-family dwelling permits was not sufficient to offset the decline for single-family dwellings. Decreases were posted in six provinces, led by Alberta.
The value of commercial building permits was down 15.6 percent to C$1.2 billion (US$924.3 million) in May, a third consecutive monthly decline. The drop was largely the result of lower construction intentions for office buildings, recreational facilities and distribution warehouses. Decreases were reported in five provinces, led by Quebec, Ontario and Manitoba.
In the industrial component, the value of permits edged up 0.6 percent to C$384 million (US$295.8 million), after posting a 7.8 percent decline the previous month. The advance was attributable to higher construction intentions for manufacturing plants. Gains were reported in six provinces, led by Ontario and Quebec.
The value of institutional building permits was up 20.3 percent to C$842 million (US$648.6 million), a second consecutive monthly advance. Higher construction intentions for medical facilities led the increase. The largest gain was recorded in the Northwest Territories, followed by Ontario and Quebec.
The value of permits for single-family dwellings decreased 7.2 percent to C$2.3 billion (US$1.8 billion) in May, following three consecutive monthly increases. Declines were recorded in seven provinces, led by Ontario, followed distantly by New Brunswick and British Columbia.
In the multi-family dwellings component, the value of permits was up 7.1 percent to C$2 billion (US$1.5 billion) in May, following a 5.8 percent decline in April. Advances were recorded in six provinces, led by Ontario, which had posted a 19 percent decline the previous month. Quebec and Nova Scotia were a distant second and third. In contrast, multi-family dwelling construction intentions in Alberta declined, following a 96.4 percent increase the previous month.
Municipalities approved the construction of 16,360 new dwellings in May, down slightly (-0.2 percent) from the previous month. The decline was the result of lower construction intentions for single-family dwellings, which decreased 10.6 percent to 5,519 new units. Multi-family homes were up 6.1 percent to 10,841 new units.
Lower construction intentions were posted in three provinces in May, led by Alberta, followed by Manitoba and New Brunswick. Conversely, the value of permits in the Northwest Territories reached a record high.
Following a 26.9 percent increase the previous month, the value of permits in Alberta fell 22.5 percent to C$916 million (US$705.5 million) in May. Every component posted a decline, except single-family dwellings. The decrease was led by multi-family dwellings and institutional structures.
The value of permits in Manitoba was down 32.3 percent to C$200 million (US$154.1 million), after three consecutive monthly advances. Lower construction intentions for commercial and institutional buildings led the decline, although every component, except multi-family dwellings, posted a decrease.
In New Brunswick, the value of permits dropped 48 percent to C$55 million (US$42.4 million), after posting strong gains the previous two months. Lower construction intentions were recorded for every component, led by single-family homes and institutional structures.
In contrast, the value of permits in the Northwest Territories reached a record high of C$107 million (US$82.4 million) in May. Higher construction intentions for institutional structures, specifically, medical facilities, were responsible for the advance.
In May, the value of building permits was down in 16 of 34 census metropolitan areas. The largest declines were registered in Calgary, Winnipeg and Edmonton.
Following a 68.6 percent increase in April, the value of building permits in Calgary was down 34.8 percent in May. Every component recorded declines, led by multi-family dwellings, commercial structures and institutional structures.
In Winnipeg, the value of permits in May was down 40.2 percent to C$137 million (US$105.5 million), following three consecutive monthly advances. The decline was led by lower construction intentions for commercial buildings and institutional structures.
The value of building permits in Edmonton was down 21.3 percent to C$313 million (US$241.1 million), the second decline in three months. Lower construction intentions for institutional structures led the decrease.
In contrast, Kitchener-Cambridge-Waterloo and Vancouver recorded the largest gains, led by higher construction intentions for multi-family dwellings.
