Canadian Building Permits Up 9.1% in October - Modern Distribution Management

Canadian Building Permits Up 9.1% in October

Higher construction intentions in Alberta attributed to the increase.

Building permits issued by Canadian municipalities increased 9.1 percent to C$7.7 billion (US$5.7 billion) in October, the first increase in three months, according to Statistics Canada. Higher construction intentions for multi-family dwellings and institutional buildings in Alberta were responsible for much of the gain, as builders filed permits in advance of the changes in the building code.

The value of residential building permits rose 15.5 percent from September to C$4.8 billion (US$3.5 billion) in October. The advance followed an 11.4 percent drop in September and a 5.4 percent decline in August. Increases were posted in five provinces, led by Alberta, followed by Ontario and British Columbia. The largest declines were reported in Manitoba and Quebec.

Construction intentions for non-residential buildings edged down 0.2 percent to C$2.9 billion (US$2.1 billion) in October. Declines were registered in five provinces, with Saskatchewan and Ontario posting the largest decreases. Alberta posted the largest gain, followed by Quebec, a distant second.

Nonresidential sector

In the institutional component, the value of permits rose 36.4 percent to C$1 billion (US$0.7 billion) in October, following a large increase in September. The gain at the national level was attributable to higher construction intentions for retirement homes, continuing care facilities and government buildings. Advances were reported in eight provinces, led by Alberta, Quebec and Ontario. Saskatchewan and New Brunswick registered declines.

The value of permits issued for industrial buildings fell 22.4 percent to C$430 million (US$316.3 million) in October, following a 17.1 percent increase in September. The decline was mainly attributable to lower construction intentions for utilities buildings and manufacturing plants. Lower industrial building construction intentions were reported in every province except Nova Scotia and New Brunswick. Ontario, Quebec and Saskatchewan registered the largest declines.

Construction intentions for commercial buildings declined for a second consecutive month, down 9.9 percent to C$1.4 billion (US$1 billion) in October. The decline at the national level was mainly the result of lower construction intentions for warehouses, office buildings and hotels and restaurants. Saskatchewan and Ontario registered the largest declines in commercial building construction intentions. Alberta saw the largest increase, which partly offset the decline in the component.

Residential sector

The total value of permits was up in six provinces, with Alberta posting the largest increase, followed by Ontario, a distant second. Saskatchewan and Manitoba registered the largest declines.

In Alberta, the value of building permits increased 53 percent in October to a record high of C$2.2 billion (US$1.6 billion). The gain was the result of increased construction intentions for multi-family dwellings, institutional structures and commercial buildings. The increase in building permits in October was largely attributable to contractors applying for permits prior to Nov. 1, when the transition period for the implementation of the 2014 Alberta Building Code ended.

In Ontario, municipalities issued building permits valued at C$2.6 billion (US$1.9 billion) in October, up 3.3 percent from the previous month. The gain was mainly attributable to higher construction intentions for multi-family dwellings, institutional buildings and single-family dwellings. Declines in the value of building permits for commercial and industrial buildings partly offset the overall provincial increase.

After posting a notable gain in September, Saskatchewan issued building permits worth C$326 million (US$239.8 million) in October, down 30.6 percent from the previous month. The decrease was mainly attributable to lower demand for building permits in all three non-residential components, led by commercial structures.

Manitoba registered a 16.1 percent decline in the value of building permits, following a 27.6 percent increase in September. Lower construction intentions for residential buildings, led by multi-family dwellings, were responsible for much of the provincial decrease.

By metropolitan areas

In October, the total value of building permits was up in 17 of the 34 census metropolitan areas in October. The largest increase was reported in Calgary, followed by Toronto and Saskatoon.

The value of permits in Calgary was up for both residential and non-residential buildings, led by multi-family dwellings, followed by commercial and institutional buildings.

In Toronto, the increase stemmed from higher construction intentions for institutional buildings, multi-family dwellings and, to a lesser extent, single-family homes.

In contrast, the largest decrease was recorded in Edmonton, which had a notable increase the previous month. Commercial buildings, multi-family dwellings and single-family houses explained much of the decline.

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