Total value of building permits in Canada totaled $5.7 billion in August, down 9.2 percent from July, but still 11.4 percent higher than in August 2009. The decline in August was due to decreases in the non-residential sector, which outweighed increases in the residential sector.

In the non-residential sector, the value of permits decreased 22.9 percent from July to $2.2 billion. This decrease occurred mainly as a result of declines in Ontario, British Columbia and Quebec.

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After four months of decline, the value of the residential sector increased 2 percent to $3.5 billion, thanks to a substantial gain in permits for multi-family dwellings, particularly in British Columbia, Ontario and Quebec.

The total value of permits increased in five provinces: New Brunswick, British Columbia, Newfoundland and Labrador, Manitoba and Saskatchewan.

Residential sector
The value of permits for multi-family dwelling in August was $1.5 billion in August, up 12.9 percent from July and the highest value since July 2008. British Columbia accounted for most of the increase, although five other provinces also registered higher intentions for the construction of multi-family dwellings. In contrast, Alberta posted the largest decline.

The value of single-family permits decreased 4.9 percent to $2 billion. Intentions in this component have fallen in the last five months. Alberta and Ontario accounted for most of the decline at the national level in August.

Municipalities approved the construction of 16,764 new dwellings in August, down 0.3 percent from July. The 10.8 percent decrease in the number of single-family dwellings, which totalled 6,488, more than offset the 7.7 percent increase in the number of multi-family dwellings, which totalled 10,276.

Non-residential sector
After two consecutive monthly increases that brought the level to a new high, the value of permits for institutional construction fell 38.9 percent to $705 million in August. Ontario recorded the largest decrease, due to lower construction intentions for health care facilities. The decrease in Quebec came mostly from lower intentions for educational facilities.

In the commercial component, municipalities issued permits worth $1.1 billion, down 12.2 percent from July. Lower construction intentions were spread across a wide variety of buildings, such as office buildings, laboratories and hotels. Commercial building intentions fell in six provinces.

In the industrial component, intentions fell 11.5 percent to $369 million, the third consecutive monthly decline. The decrease in August came mostly from manufacturing buildings in Ontario and utility buildings in Alberta. Industrial construction intentions fell in seven provinces.

Source: Statistics Canada