Strong gains in the residential sector again propelled the total volume of building construction investment across the country to a record high.

February’s increase of 4.2 percent over January’s already-record total brought investment volumes to $16.8 billion.

Residential-sector investment reached a new high of $12.3 billion for the month. Statistics Canada reports that the majority of this growth stemmed from single-family home construction, which rose for a fifth consecutive month, up 9.4 percent to $6.7 billion.

Single-family homes being built in census metropolitan areas (CMAs) continued to drive the growth. The strength of single-family home investment in recent months may be partly attributable to an increased demand for more living space as Canada approaches the end of the first year of the COVID-19 pandemic.

Multi-unit construction investment also rose in February, up 1.6 percent to $5.7 billion. Investment in Ontario for this component increased for a tenth consecutive month, with ongoing construction projects such as the Time and Space condominium complex in Toronto.

Non-residential construction investment, meanwhile, was little changed for a fifth consecutive month. Investment edged up just 0.2 percent to $4.5 billion.

Institutional construction investment was up 0.6 percent, with six provinces posting increases. Quebec reported the largest gain, attributable partly to high-value renovation projects. British Columbia reached a record high, with projects such as the construction of Burnaby North Secondary School contributing to growth in this component.

Investment in industrial construction increased 0.5 percent after two consecutive monthly declines, reaching $810.7 million in February. The continued construction of a national distribution centre for Canadian Tire in Brampton, and a wastewater treatment plant in Montréal contributed to gains in this component.

Commercial building construction investment remained at $2.5 billion for the fifth consecutive month. Declines in seven provinces offset a large gain in Ontario, attributable to the ongoing construction of multiple high-value projects in Toronto, Ottawa and Pickering.

Statistics Canada cautions that not all of the increases in investments are due to increases in construction activity. It indicates that approximately half of the gain in construction investment compared with a year ago was attributable to price increases. This likely reflects rising demand and tightening supply for building materials since the start of the COVID-19 pandemic.