Declines in residential sector bring down permit values in October
A second consecutive poor month for residential construction pushed down the total value of building permits issued across the country again in October.
Statistics Canada reports that the total value of building permits declined by 1.4% to $10.0 billion for the month.
Losses in the residential sector more than offset gains from the non-residential sector.
The value of residential permits declined 6.4% to $6.5 billion. Similarly, the number of new residential units decreased 4.6%, mainly due to single-family dwellings (-9.3%) which fell for the fifth consecutive month.
The value of permits issued in the multi-family component decreased 6.9%, with Ontario posting its second consecutive decline after reaching its peak in August. Meanwhile, the value of permits in the single-family homes component declined 5.8%. Eight provinces posted drops in construction intentions.
On the other side of the ledger, the total value of non-residential sector permits increased 9.5% to $3.5 billion in October.
Construction intentions in the commercial component increased by 18.0%. Ontario posted the largest gain, with several projects valued at more than $20 million. In September, only one Ontario permit was reported above this level.
The value of building permits in the industrial component also increased – by 16.2%. This increase was also due to a strong performance in Ontario, where the town of Erin reported a $114-million permit for its wastewater treatment plant project. New Brunswick also posted notable gains, with three projects valuing over $5 million each.
The institutional component continued to slow as it dropped 17.1% in October, following a 38.2% decrease the previous month, reaching its lowest value since May 2020.