Canadian New Housing Construction Up 5% in May - Modern Distribution Management

Canadian New Housing Construction Up 5% in May

At the national level, apartment and condo spending drove the increase.

Spending on new housing construction in Canada totaled C$4.2 billion (US$3.2 billion) in May, up 5 percent from the same month a year earlier, according to Statistics Canada.

The increase at the national level came mainly from higher investment in apartment and apartment-condominium building construction, up 17.2 percent year over year to C$1.5 billion (US$1.1 billion). Spending on row house construction also contributed to the advance, up 13.4 percent to C$454 million (US$347.9 million).

In contrast, investment in single-family dwellings was C$2 billion (US$1.5 billion), 2.6 percent lower than in May 2015, while spending on semi-detached dwelling construction declined 10.7 percent to C$206 million (US$157.9 million).

At the provincial level, the largest increases in new housing investment were recorded in Ontario and British Columbia.

In Ontario, investment rose 24.3 percent from the same month a year earlier to C$1.7 billion (US$1.3 billion) in May. The increase resulted from higher construction spending on all dwelling types. Construction investment in single-family dwellings led the advance, rising 25.8 percent to C$886 million (US$679 million).

Spending in British Columbia increased 31.9 percent year over year to C$937 million in May (US$718.1 million). This gain was attributable to higher spending on apartment and apartment-condominium buildings, single-family dwellings and row houses. Construction spending for semi-detached buildings declined.

Investment in new housing construction fell in six provinces in May compared with May 2015, with Alberta, Saskatchewan and Quebec registering the largest decreases. Spending was down 31.4 percent to C$653 million (US$500.4 million) in Alberta.

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