Canadian Building Permits Up 2.5% in June - Modern Distribution Management

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Canadian Building Permits Up 2.5% in June

Six provinces registered gains in the total value of building permits in June.

Canadian municipalities issued C$8.1 billion (US$6.4 billion) worth of building permits in June, up 2.5 percent from May and the second highest value on record. Higher construction intentions for multi-family dwellings and commercial buildings were mainly responsible for the national increase. All building components reported gains in June, except for single-family dwellings.

The total value of building permits rose in six provinces in June, led by Quebec and Manitoba. Meanwhile, construction intentions were up in 14 of 36 census metropolitan areas (CMAs), led by Toronto, Montréal and Winnipeg. Hamilton reported the largest decline in June (-60 percent), however, this followed a notable gain in May.

The value of residential building permits fell 0.9 percent in June to C$5 billion (US$3.9 billion), the fourth decrease in five months. The decline was mainly the result of lower construction intentions in four provinces, notably Ontario.

In June, the value of permits for single-family dwellings decreased 12.5 percent to C$2.4 billion (US$1.9 billion). Seven provinces registered declines, with Ontario being the main contributor to the decrease.

Conversely, construction intentions for multi-family dwellings rose 12.5 percent in June to C$2.7 billion (US$2.1 billion), marking a third consecutive monthly increase. Seven provinces registered gains, led by Ontario and British Columbia.

Municipalities issued C$3 billion (US$2.4 billion) worth of building permits for non-residential structures in June, up 8.8 percent from May. This marked the fourth consecutive monthly increase. Of the five provinces that posted gains, only Ontario, Quebec and Manitoba registered increases in all three non-residential components.

In the commercial component, the value of permits rose 13 percent to C$1.7 billion (US$1.3 billion) in June, a second consecutive monthly increase. The gain was largely attributable to higher construction intentions for office buildings and student residences in Ontario.

The value of building permits issued for industrial structures was up 6.3 percent to C$573.5 million (US$451.4 million) in June, a fourth consecutive monthly increase. The national increase was led by Quebec and was largely attributable to higher construction intentions for maintenance buildings.

The institutional component increased 2.1 percent to C$749.3 million (US$589.7 million) in June, with gains posted in four provinces. The increase primarily stemmed from the construction intentions of educational structures and hospitals in Ontario.

Canadian municipalities issued C$23 billion (US$18.1 billion) worth of building permits in the second quarter of 2017, up 10.4 percent compared with the second quarter of 2016. All building components reported gains except for institutional structures.

Led by multi-family dwellings, construction intentions for residential dwellings rose 11 percent from the second quarter of 2016 to the second quarter of 2017, to C$14.7 billion (US$11.6 billion). The value of non-residential building permits increased 9.3 percent to C$8.4 billion (US$6.6 billion), led by the industrial component.


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