The 2020 Mid-Year Economic Update_long

Canadian Residential Construction Investment Up 7.7% in 2Q

Investment in renovations accounted for almost 40 percent of the year-over-year change.

Canadian investment in residential construction totaled C$33.2 billion (US$26.9 billion) in the second quarter, up 7.7 percent from the same quarter in 2016.

Higher investment in every component except cottages contributed to the total quarterly increase. Investment in renovations totaled C$15 billion (US$12.2 billion) (up 6.6 percent) and accounted for almost 40 percent of the year-over-year change at the national level.

Investment in single-family dwellings was up 12.9 percent to C$7.4 billion (US$6 billion), while acquisition costs related to new dwellings rose 8.2 percent to C$3.7 billion (US$3 billion).

Investment in residential construction rose year over year in eight provinces in the second quarter. Ontario, up C$1.2 billion (US$1 billion), posted the largest gain, accounting for 52 percent of the total national increase. Investment in British Columbia was up 7.9 percent or C$400 million (US$323.9 million), while Newfoundland and Labrador were down 9.3 percent or C$36.3 million (US$29.4 million) and New Brunswick was down 2 percent or C$8.5 million (US$6.9 million).

Ontario was up by C$580.3 million (US$469.9 million) and posted the largest quarterly increase in spending on renovations, followed by Alberta with C$168 million (US$136.1 million).

In British Columbia, the gain was mostly due to additional spending on apartment buildings construction which increased by C$136.5 million (US$110.5 million).

Alberta reported its second consecutive year-over-year gain in residential construction investment, up 5.1 percent to C$4.3 billion (US$3.5 billion). This gain was largely due to higher spending on single-family homes and renovations.

 

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