Canadian municipalities issued building permits worth C$6.6 billion (US$5.5 billion) in November, down 13.8 percent from October. The decrease in November resulted primarily from widespread declines in both the non-residential and residential sectors in several provinces
The total value of building permits was down in seven provinces in November. Following a strong increase the previous month, British Columbia posted the largest decline, followed by Alberta, with Quebec a distant third. The value of building permits for the first 11 months of 2014 totaled C$77.9 billion (US$65.6 billion), up 4.8 percent from the same period in 2013. The gain was fuelled by increases in both the non-residential (+6.1 percent) and residential (+3.9 percent) sectors.
Following two consecutive monthly gains, construction intentions in the non-residential sector fell 29.2 percent to C$2.2 billion (US$1.8 billion) in November. Declines were recorded in eight provinces, with British Columbia and Alberta accounting for most of the decrease. Gains occurred in Manitoba and, to a lesser extent, Prince Edward Island.
The value of residential building permits fell 3.1 percent to C$4.4 billion (US$3.7 billion) in November, as a result of lower construction intentions for both multiple and single-family dwellings.
Nonresidential sector
In November, construction intentions for commercial buildings decreased 25.8 percent to C$1.2 billion (US$1 billion) in November, marking a second consecutive monthly drop. Declines were posted in six provinces, led by British Columbia, Quebec and Alberta. This decrease was the result of lower construction intentions for hotels and restaurants, warehouses, office buildings and retail outlets. The value of commercial permits increased in four provinces, with Ontario posting the largest gain.
In the institutional component, the value of building permits fell 24.9 percent to C$684 million (US$576.1 million) in November, following two consecutive monthly increases. Declines were posted in five provinces, with British Columbia accounting for much of the decrease. Nationally, the drop was primarily the result of lower new construction intentions for medical facilities, as well as nursing homes and retirement residences.
Construction intentions for industrial buildings declined 43.1 percent to C$376 million (US$316.7 million) in November, offsetting the increase observed the previous month and falling to their lowest level since April 2014. This decrease was primarily the result of lower construction intentions for manufacturing plants and utilities buildings, mainly in Ontario, Alberta and Quebec.
Residential sector
In November Canadian municipalities issued C$2 billion (US$1.6 billion) worth of building permits for multi-family dwellings 3.5 percent less than in October. Decreases were recorded in six provinces, with Alberta and British Columbia accounting for much of the decline. The largest gain occurred in Ontario, with Manitoba a distant second.
In November, the value of building permits for single-family dwellings was $2.4 billion (US$2 billion), 2.6 percent less than in October. Declines were posted in seven provinces, with the largest occurring in Saskatchewan and Quebec. Ontario, British Columbia and New Brunswick registered gains.
At the national level, Canadian municipalities approved the construction of 16,899 new dwellings, down 8.8 percent from the previous month. This decline was the result of an 11.2 percent decrease in the number of multi-family dwellings to 10,777 units, and a 4.1 percent decrease in the number of single-family dwellings to 6,122 units.
By geography
The total value of building permits decreased in seven provinces in November, with the largest drop occurring in British Columbia, followed by Alberta. Both provinces reported large declines in non-residential and multi-family building intentions in November after posting increases the previous month. In British Columbia, the decrease in the non-residential sector was mostly due to lower construction intentions for institutional and commercial buildings, while in Alberta, reduced commercial and industrial building accounted for the decline.
Ontario recorded the most significant gain, attributable to higher construction intentions for multi-family dwellings, mainly apartment-condominium projects. An increase was also posted in Manitoba, where the value of permits was higher for multi-family dwellings and non-residential buildings.
Construction intentions were down in 24 of the 34 census metropolitan areas. The largest decrease occurred in Vancouver, followed by Edmonton and Calgary.
The drop in Vancouver was due to lower construction intentions for commercial and institutional buildings, as well as multi-family dwellings. The decrease in Edmonton came mainly from commercial buildings, multi-family dwellings and industrial buildings, while Calgary saw a drop in construction intentions for multi-family dwellings.
The largest gain was registered in Toronto, followed by Barrie and Winnipeg. The gains in all three census metropolitan areas were in large part the result of increases in building construction intentions for multi-family dwellings.
