Decline arrives despite increasing volume of construction intentions
The total value of building permits in Canada fell by 3.9% on a monthly basis to settle at $10.9 billion in November, with declines posted across almost all asset classes, according to the national statistics agency.
Despite positive momentum in residential construction intentions across eight provinces, the aggregate value of residential permits in Canada saw a 2.8% drop to $7 billion in November, Statistics Canada said.
Significant month-over-month decreases in the multi-unit markets of British Columbia and Quebec played a significant role in this overall dip, StatCan noted. British Columbia posted a 19.4% decline (amounting to a $249.3 million drop), while Quebec experienced a 17.3% cut (down by $231.0 million).
On the other hand, Atlantic Canada collectively achieved a 30% surge in residential permit values to reach $421.8 million in November. This represented the highest monthly value for the region during 2023 so far, StatCan said.
The Prairie provinces also registered their peak monthly level in the same period, with a 9.8% monthly increase to a total of $1.4 billion.
Residential permit values in the Northwest Territories grew by 10.6% to reach $7.4 million in November, while Ontario saw a more modest 2.1% uptick to $3 billion, StatCan said.
With a projected shortage by 2024, RE/MAX Canada President Christopher Alexander urges the government to incentivize new home construction.
— Canadian Mortgage Professional Magazine (@CMPmagazine) December 6, 2023
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The combined monthly value of non-residential building permits went down by 5.8% monthly for a total of $3.9 billion in November. All components of the non-residential sector posted declines, with the commercial market seeing its third consecutive monthly decrease, down 3.5% from October.
StatCan said that commercial construction permit values, in particular, have been on a downward trajectory since achieving a record high of $2.9 billion in March 2023. The $1.7 billion value of commercial permits issued in November 2023 represented a 16.2% annual decrease.
