Strong gains in the non-residential sector helped propel a gain in the value of building permits in August, Statistics Canada reports.

The total value of permits issued across the country increased by 3.4% to $11.9 billion for the month. A gain of just under 15% in the value of non-residential permits more than offset a decline of just under 4% in the residential sector.

The total monthly value of residential permits dropped 3.7% to $6.8 billion in August. Weaker demand for multi-unit construction in Ontario (-15.8% or -$315.6 million), Manitoba (-44.9% or -$90.3 million), Quebec (-7.9% or -$57.1 million), and Nova Scotia (-27.3% or -$29.9 million) propelled the decline.

These reductions were partly offset by monthly gains in the value of single-family home permits. The value of permits there rose by 5.5% to $2.9 billion in August. This marks the fourth consecutive monthly increase for this component, and follows a year of trending decline in construction intentions from May 2022 to April 2023.

The total monthly value of non-residential permits, meanwhile, rose 14.8% to $5.0 billion in August, with gains concentrated in Ontario (+28.5% or +$503.8 million) and British Columbia (+45.5% or +$326.2 million).

Notably high-value non-residential permits were issued in August for two hospital renovations (in Toronto and North Vancouver), a new university building in Kelowna, a new correctional facility in Thunder Bay, and a new arena in Whitby.