Building permits jump 17 percent in September
The value of building permits issued by municipalities across the country jumped by 17 percent in September to $9.4 billion. It was the first time this year permit totals have crossed the $9-billion mark.
All five sectors showed gains, and three-quarters of the growth recorded in the country came from a jump in permit values of more than 29 percent in Ontario. The province recorded $4.6 billion worth of construction activity for the month.
In its monthly building permit report, Statistics Canada suggests that as COVID-19 cases began to rise in September, some municipalities reported seeing builders submit applications earlier as a way of guarding against potential shutdowns.
The total value of residential permits issued in September, including single family and multi-family dwellings, increased 6.9 percent to $6.0 billion.
The value of permits issued for single family homes rose 8.9 percent to $2.8 billion in September, led by Ontario (+18.0 percent). It was the fifth consecutive monthly gain reported in the province.
Five provinces reported an increase in the value of permits issued for multi-family dwellings, lifting the national total by 5.2 percent to $3.3 billion. British Columbia (+49.1 percent), after two months of decline, led the nation in growth in this component.
Overall, activity in Ontario’s residential sector rose by 9.6 percent to $2.9 billion.
Meanwhile, the total value of non-residential permits was up 40.6 percent to $3.4 billion in September, mostly attributable to large projects in Ontario (+$805 million).
Additional permits for Project Python in Ottawa and the Breithaupt Block office building in Kitchener, contributed to a 42.3-percent rise in the value of commercial permits nationally, increasing the total to $1.9 billion.
The value of permits issued for industrial buildings rose in eight provinces, breaking the downward trend recorded over the previous three months. Permits issued in Quebec, Ontario and Prince Edward Island drove the increase of 49.1 percent to $713 million nationally.
Following two months of declines, the value of institutional permits expanded by 30.2 percent to $799 million. A $130-million permit issued for major renovations to the Centre Hospitalier Universitaire de Sherbrooke in Quebec and several permits issued for the new construction of nursing homes and senior citizen homes in Ontario contributed to the increase in this total.
The value of non-residential permits overall in Ontario rose 86.4 percent to $1.7 billion.
Quarterly levels near those observed in the fourth quarter of 2019
Following four consecutive quarters of decline, the value of building permits jumped 16.5 percent in the third quarter of 2020, almost returning to levels observed in the fourth quarter of 2019. This was the largest gain since the fourth quarter of 2009 when the economy was recovering from the 2008 financial crisis.
All sectors posted gains in the third quarter of 2020, with the residential sector soaring to record levels. Residential permits rose 16.8 percent to $16.9 billion, the highest level since the start of the modern series which dates back to 2002.