Canadian investment in residential construction totaled C$31.9 billion (US$23.8 billion) in the third quarter, up 3.3 percent compared with the same quarter a year earlier.
The advance was due to increases in investment in apartment and apartment-condominium building construction (up 21.5 percent to C$4.7 billion (US$3.5 billion)), acquisition costs related to new dwelling units built (up 7.4 percent to C$3.6 billion (US$2.7 billion)), renovation spending (up 1.3 percent to C$14.1 billion (US$10.5 billion)) and spending on converted dwelling units (up 76.9 percent to C$385 million (US$287.7 million)).
Residential construction investment increased in five provinces in the third quarter. Ontario reported the largest gain, followed by British Columbia and Quebec. In Ontario, investment grew 9.5 percent to C$12.2 billion (US$9.1 billion) in the third quarter compared with the same quarter a year earlier. Spending on single-family dwelling construction, apartment and apartment-condominium building construction and renovation work, as well as acquisition costs related to new dwelling units built were responsible for much of the increase.
In British Columbia, residential construction investment rose 5.2 percent to C$4.5 billion (US$3.7 billion) in the third quarter. The advance occurred mainly as a result of higher investment in apartment and apartment-condominium building and single-family dwelling construction, as well as higher acquisition costs.
In Quebec, investment in residential construction increased 3 percent to C$6.7 billion (US$5 billion). Spending on renovation work, converted dwelling units and apartment and apartment-condominium building construction was sufficiently large to offset decreased investment in single-family housing and lower acquisition costs associated with new dwelling units completed.
Saskatchewan registered the largest decrease, followed by Alberta and Manitoba. In Saskatchewan, investment totaled C$981 million (US$733 million) in the third quarter, down 16.6 percent from the third quarter of 2014. The drop was mostly the result of lower spending on single-family dwelling construction and lower acquisition costs.
In Alberta, construction spending decreased 3.4 percent to C$4.8 billion (US$3.6 billion) in the third quarter. Lower investment in single-family dwelling construction offset higher spending on apartment and apartment-condominium buildings, renovation work and row housing, as well as increased acquisition costs.
In Manitoba, investment in residential construction declined 14 percent from the third quarter of 2014 to C$901 million (US$673.2 million) in the third quarter. The decline was attributable to lower investment in single housing construction and renovation work.
