Investment in building construction surged to yet another record in March—the third month in a row in which totals surpassed previous highs.

Increases were again driven by the residential sector. Totals there rose for the eleventh consecutive month in March.

Overall investment in building construction increased 5.9 percent to $18.6 billion, while residential-sector investment increased by 7.6 percent to $14.0 billion in March.

Driving investment on the residential side was investments in single units, which jumped 10.7 percent to $7.8 billion. Quebec led the way with an increase of 30.4 percent, bringing investment in single homes to $1.9 billion for the province, while investment in Ontario was up 9.8 percent to $3.3 billion, driven by renovations to single family homes in Toronto.

Growth in multi-unit construction continued, up 3.9 percent to $6.2 billion. Gains in Quebec and Ontario led the overall increase in this component, but six provinces reported declines. Both new construction and renovations of condominiums and apartments in Toronto and Montréal accounted for most of the growth.

Non-residential investment increases slightly

Growth in the non-residential sector was flatter.

Investment grew by 1.1 percent to $4.6 billion in March, and all components posted slight increases. Despite this gain, the commercial and industrial investment components were below pre-COVID-19 pandemic levels.

Institutional construction investment was up 2.2 percent to $1.2 billion on the strength of several high-value projects in Montréal, and another strong month of activity in British Columbia.

Commercial building construction, meanwhile, rose 0.8 percent to $2.6 billion. Ontario and Alberta were among six provinces to record slight gains in that component.

Finally, investment in industrial construction edged up 0.4 percent to $823 million in March. Increases in Ontario, British Columbia, Prince Edward Island and Quebec offset declines elsewhere.

Residential investment drives first quarter of the year

The total value of investment in building construction for the first quarter of 2021 is 9.3 percent ahead of the fourth quarter of last year. Statistics Canada attributes that finding to continued strength in the residential sector, in which investment is 12 percent ahead of the last three months of 2020. Non-residential sector investment is 1.1 percent to $13.6 billion in the first quarter, following a 6.0 percent decline in the previous quarter.