Canadian Building Permits Down 3.7% in August - Modern Distribution Management

Canadian Building Permits Down 3.7% in August

Lower construction intentions in most provinces attributed to the decrease.

Building permits issued by Canadian municipalities decreased 3.7 percent to C$7.5 billion (US$5.8 billion) in August, according to Statistics Canada. The decline was attributable to lower construction intentions in most provinces, mainly British Columbia, Alberta, Quebec and Saskatchewan.

The value of permits for nonresidential buildings fell 1.3 percent to C$2.8 billion (US$2.2 billion) in August, a second consecutive monthly decrease. Decreases were recorded in six provinces, led by Alberta, followed by Quebec and Saskatchewan. Ontario registered the largest increase in non-residential construction intentions.

In the residential sector, the value of permits fell 5.1 percent to C$4.7 billion (US$3.6 billion) in August, the first decline in three months. Decreases were posted in six provinces, with British Columbia posting the largest decline. Ontario registered the largest increase in the value of residential building permits.

Nonresidential sector

In the commercial component, the value of permits rose 1.8 percent to C$1.7 billion (US$1.3 billion) in August. Higher construction intentions for office buildings and, to a lesser degree, warehouses and laboratories accounted for the growth at the national level. Increases in three provinces, led by Ontario, offset decreases in the other provinces. The largest declines were registered in Alberta, followed by Saskatchewan and Quebec.

Municipalities issued C$467 million (US$357.9 million) worth of industrial building permits in August, down 7.9 percent from July. Nationally, the decrease was due to lower construction intentions for utilities and transportation buildings. Decreases in four provinces, led by Alberta and Quebec, offset the increases in the other provinces. Saskatchewan and Ontario recorded the largest gains.

The value of permits for institutional buildings declined 4.3 percent to C$631 million (US$483.6 million) in August. The decrease was due to lower construction intentions for medical buildings and children's treatment centers. The largest declines were recorded in Quebec, Manitoba, Ontario and Saskatchewan. Alberta and British Columbia posted the largest increases.

Residential sector

The value of permits for single-family dwellings fell 1.9 percent to C$2.4 billion (US$1.8 billion). The decrease at the national level was attributable to lower construction intentions for single-family dwellings mostly in Ontario and, to a lesser degree, in Alberta. Conversely, Quebec and Saskatchewan saw the largest increases.

Contractors took out C$2.3 billion (US$1.8 billion) worth of multifamily dwelling permits in August, down 8.3 percent from July. The largest decrease was in British Columbia, where the value of building permits for multiple dwellings had reached a record high in July. Alberta and Nova Scotia were a distant second and third. Ontario posted the largest increase in construction intentions for multi-family dwellings.

Municipalities approved the construction of 18,709 new dwellings in August, down 4.6 percent from July. The decrease was attributable to multi-family dwellings, which fell 5.6 percent to 12,675 units, and single-family dwellings, which declined 2.4 percent to 6,034 units.

By geography

The total value of building permits fell in every province and territory except Ontario, Newfoundland and Labrador and the Northwest Territories. British Columbia, Alberta, Quebec and Saskatchewan saw the largest decreases.

After posting the largest increase the previous month, British Columbia recorded the biggest decrease in August, mostly attributable to lower construction intentions for multi-family dwellings. In Alberta, commercial, industrial and residential buildings were behind the decrease.

In Quebec, the decline was attributable to lower construction intentions for non-residential buildings, mainly commercial buildings. In Saskatchewan, the decrease was a result of lower construction intentions for commercial buildings and, to a lesser extent, institutional buildings.

Conversely, the increase in Ontario resulted from higher construction intentions for commercial buildings and multi-family dwellings. The slight increase in Newfoundland and Labrador was attributable to institutional buildings, while commercial buildings accounted for the increase in the Northwest Territories.

The total value of permits was down in 22 of the 34 census metropolitan areas. Vancouver, Calgary, Edmonton, Oshawa and Montréal posted the largest declines.

The decrease in Vancouver resulted mainly from lower construction intentions for multi-family dwellings and, to a lesser degree, commercial buildings.

In Calgary, the decrease was due to lower construction intentions in every component except institutional buildings, while in Edmonton, commercial and institutional buildings were mostly responsible for the decline.

In Oshawa, lower construction intentions for all types of buildings, largely multi-family dwellings, accounted for the decline in August. In Montréal, the decrease was attributable to lower construction intentions for non-residential buildings, particularly commercial projects.

Conversely, the advance in Toronto was mainly on account of higher construction intentions for commercial buildings and multiple dwellings.

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