Investment In Building Construction Up As Residential Rebounds

Investment in building construction edged up across Canada in August, putting an end to five straight months of decline.

According to new data from Statistics Canada, investment in overall building construction increased 1.1% to $17.9B in August, largely due to a rebounding residential sector.

Reversing the downward trajectory that began in February, investment in residential construction rose 1.6% on a monthly basis to $11.9B. The single-family home component increased 2.4% to $5.9B, while investment in multi-unit construction rose 0.9% to $6.0B.

The strengthening investment in residential construction coincides with a rising trend in housing starts, which have been on an upward trajectory since June, and comes despite falling home sales and a pair of back-to-back interest rate hikes.

Investment in building construction, seasonally adjusted.(Statistics Canada)

Quebec led the growth in both multi-unit and single-family investment — the latter component registered a 10.6%, or $95M, increase, its largest monthly jump since March 2022. Overall, residential investment in the province rose 7.6% to $2.1B from July to August.

Meanwhile, British Columbia posted its eleventh consecutive monthly decline in the multi-unit component, with investment falling 3.2% to $1.3B. Total residential investment in the province dropped 2.4% month over month to $2.1B.

Overall, five other provinces saw total investment in residential building construction rise on a monthly basis in August, including Ontario (1.6% to $4.8B) and Alberta (1.4% to $1.5B), and six more experienced declines.

Investment in residential building construction, seasonally adjusted.(Statistics Canada)

While investment in the residential sector spiked, activity in the non-residential sector was relatively muted as the summer came to an end.

Although there were monthly gains in the industrial and institutional components, which edged up 1.1% and 0.7%, respectively, they were offset by a 0.5% dip in the commercial component.

As a result, total investment in non-residential construction increased just 0.1% from July to August, to $5.9B.

Real Estate News

Investment In Building Construction Edges Up As Residential Rebounds

​Reversing the downward trajectory that began in February, investment in building construction rose on a national basis as the summer came to an end.

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Reversing the downward trajectory that began in February, investment in building construction rose on a national basis as the summer came to an end.

Anthem Properties and Crestpoint have also made significant changes to the tower planned for 1318 Thurlow Street and 1068-1090 Burnaby Street in the West End of Vancouver.

The frequent builder framework will allow applications for CMHC's Affordable Housing Fund and Apartment Construction Loan Program to be expedited.

Bosa Properties recently sent a letter to Burnaby City Council outlining its thoughts, after it backed out from acquiring a site in the Royal Oak neighbourhood.

Cedar Coast acquired the Langley Mall at 5501 204 Street from First Capital REIT over two years ago.