Multi-unit residential construction fuels the sharp rebound as housing demand shifts
Canada's construction sector made a strong comeback in July, with building permits rising sharply thanks to renewed interest in multi-unit housing developments, according to Statistics Canada.
The total value of permits jumped 22.1% to $12.4 billion, reversing two months of decline. Both the residential and non-residential sectors contributed to the growth, but it was the multi-unit construction boom that really stood out.
The residential sector saw a 16.7% increase, with the multi-unit component leading the charge. Permits for multi-unit buildings surged by 29.3%, reaching $5 billion. This was a major factor behind the sector’s overall growth, even as single-family housing permits dipped slightly by 1.9%.
British Columbia experienced the biggest jump in multi-unit permits, with a staggering 152.1% increase ($766.8 million), largely driven by projects in cities like Richmond. Alberta and Ontario also contributed significantly, with increases of 33.1% ($141.0 million) and 7.7% ($122.6 million) respectively.
StatCan reported that a total of 20,700 new dwellings in multi-unit buildings and 4,100 new single-family dwellings were authorized in July. The 12-month period from August 2023 to July 2024 saw a total of 266,200 new units authorized across Canada.
The non-residential sector also showed strong growth, with the total value of permits rising 31.8% to $4.8 billion. This growth was seen across all components: commercial (+18.4% to $2.2 billion), industrial (+98.6% to $1.3 billion), and institutional (+14.8% to $1.3 billion).
Ontario led the non-residential sector growth with a 23.8% increase to $2.2 billion, driven by gains in the industrial component, which rose 99.3% to a record-high $678.3 million. This was supported by construction intentions for the expansion of a tire manufacturing plant in Greater Napanee and broad-based growth throughout the province.
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British Columbia also saw significant growth in the non-residential sector, with an increase of 99.2% to $869.1 million. This was due to large gains across all components: industrial (+349.2%), institutional (+383.0%), and commercial (+30.8%).
On a constant dollar basis (2017=100), the total value of building permits in July was up 22.9% compared to the previous month and rose 3.4% year over year, indicating strong growth in construction intentions across Canada.
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