A positive trend in permits and intentions continues to work through the market
The total value of building permits nationwide rose 4.3% to $10.1 billion in September, according to new data from Statistics Canada.
Residential construction intentions also surged by 8.2% monthly, in stark contrast to the 3.2% decline in the non-residential sector. On a constant dollar basis (2012=100), building permits grew by 3.4% to reach $6.9 billion.
The largest proportional increase in building permits in September was seen in Ontario (up 6.3%). High-value permits for two new condo buildings in Mississauga and Toronto valued at over $300 million pushed Ontario’s multifamily permits up by 40.4% to reach $1.7 billion, comprising a large portion of the national multifamily market’s 18.6% increase to $3.9 billion.
However, construction intentions for single-family homes weakened by 2.7% to end up at $3 billion, mainly due to significant decreases in Ontario and Quebec.
Read more: Increases in construction costs slowing down – Statistics Canada
On a quarterly basis, the total value of building permits ticked down by 3.8% to $29.8 billion during the third quarter, although they were 14.3% higher compared to Q3 2020.
The value of residential building permits fell by 5.4% quarterly to $20.2 billion in Q3, driven by declines in both single-family and multi-family intentions. On a constant dollar basis (2012=100), building permits declined by 6.6% to $20.4 billion in the third quarter, and were down 3.1% annually.
“The year-over-year decrease in constant dollar terms mainly reflects higher construction prices in 2021,” Statistics Canada said.
