Canada Building Permit Values Rise For Second Straight Month

Construction intentions rose across Canada for a second straight month in June, but ended the quarter on a negative note.

According to new data from Statistics Canada, the total value of building permits issued in June rose 6.1% month over month to $11.6B, a significant portion of which was driven by the construction of two new hospitals in Quebec and British Columbia.

As it did in May, the non-residential sector led the growth, with total permit values increasing 20.4% to $4.7B in June. A slight decline of 7.7%, or $176M, in the commercial component was more than offset by gains in the industrial component, which saw permit values jump 51%, or $349.9M.

The main driver of the sector’s growth, though, was the institutional component, which saw construction intentions increase 67.2%, or $619.3M. Permits for the construction of new hospitals in Vaudreuil-Dorion, Quebec, and Dawson Creek, British Columbia, accounted for 58.6% of all institutional construction intentions in June.

Following a record-high Q1 2023, construction intentions in the non-residential sector fell 9.6% in Q2 2023 to $12.0B. The decline pulled the total value of building permits issued in the second quarter down 1% from the first quarter, to $32.3B.

A graph showing the value of building permits for the residential and non-residential sectors Value of building permits for the residential and non-residential sectors. (Statistics Canada)

Despite increases in seven provinces, the total monthly value of residential building permits fell 1.8% to $6.9B in June.

Although Ontario drove the sector’s growth in May, it led the decline in June, with permit values dropping 11.4%, or $358.1M. Notable declines were also registered in Saskatchewan (51.4% or $58.5M) and New Brunswick (20.5% or $20.7M).

The monthly increase was concentrated in the single-family component, which saw permit values rise 1.1%, or $27.7M, in June. In contrast, permit values for multi-family dwellings dropped 3.5%, or $156.4M on a monthly basis.

A graph showing the value of building permits for the single-family and multi-family components Value of building permits for the single-family and multi-family components. (Statistics Canada)

Across Canada, permits for 22,000 new dwellings were issued in June. Throughout Q2 2023, permits were issued for 64,400 units. Although the figure marks a 2.7% increase from Q1 2023, it’s 14.7% below Q2 2022, when permits were issued for 75,400 units.

Despite the aforementioned total decline in permit values in Q2 2023, the residential sector broke a three-quarter slump and rose 4.9% on a quarterly basis to $20.3B. Annually, though, the value of construction intentions in the residential sector was 16.1% below Q2 2022, when permit values equalled $24.2B.

Building permits issued across Canada in June 2023 Statistics Canada

From Your Site Articles

Building Permit Values Rise For Second Straight Month As Non-Residential Sector Ramps Up

The total value of building permits issued across Canada in June jumped 6.1% to $11.6B, a significant portion of which was driven by the construction of two new hospitals.

Trending

You may also like

​The receivership application was filed by KingSett Capital against Thind's Highline and Minoru Square projects.

Ontario has consistently ranked in the bottom half of provinces in terms of homebuilding per capita over the last six years — the data for 2024 being an indicator that things are only getting worse.

The potential lawsuit is coming from Mappro Realty, the owner of an adjacent property, over the staging area being used for construction of The One.

For those looking to lay down roots in Sherwood Park, a true best-of-both-worlds destination, now may be just the right time — as the community welcomes Hearthstone.

​The District Northwest project by Thind Properties is set for 13438 105A Avenue in Surrey and consists of two high-rise towers.

According to CMHC, housing starts across Canada shifted up from 223,391 units in September to 240,761 units this October, though the six-month trend remains "flat."

Chacon Developments is currently facing two receiverships and two of its other properties have been made available via power of sale.

Nestled amongst lush foliage, 32 Arjay Crescent, with its grand exterior and sophisticated interior designs, offers one of the most stunning homes in the neighbourhood.

Revised development plans from Pinnacle International ask for increased heights across the board, bringing the proposed storey-count up to 54, 44, and 15 storeys.

The Canada Lands Company and the MST Nations acquired the Jericho, Heather, and Marine Drive Lands in Fall 2014.

Though the Bank of Canada has delivered four interest rate cuts since June, including a healthy 50-bps cut in October, the growth in sales is being attributed to a jump in listings.

The program is called the Purpose-built Rental Homes Incentives Stream and, at a high level, it pairs qualifying projects with certain perks, including development charge deferrals and property tax reductions.

For those with a taste for life’s finest things, but who prefer a touch of edge, this three-bed, three-bath estate in Prince Edward County is a true sanctuary.

The building landscape has its challenges, but we’re still seeing ambitious developers, like Camrost Felcorp, lay their claim.

Camrost Felcorp's Upper East Village offers alluring homes for today’s down-sizers.

​The property, 98 James Street South in Hamilton, was placed under receivership in August and is shovel-ready, with development charges locked in at historical rates.

2024 © STOREYS Publishing Inc. | All Rights Reserved

The receivership application was filed by KingSett Capital against Thind's Highline and Minoru Square projects.

The District Northwest project by Thind Properties is set for 13438 105A Avenue in Surrey and consists of two high-rise towers.

The property, 98 James Street South in Hamilton, was placed under receivership in August and is shovel-ready, with development charges locked in at historical rates.