On-Site Magazine

December permits well ahead of 2020 figures

Despite small dip from November, overall permit values finish the year on a high note.

February 3, 2022   Adam Freill
Construction

Building permits, December 2021

Building permits, December 2021.
(Source: Statistics Canada, Table 34-10-0066-01, Building permits, by type of structure and type of work.)

The value of building permits hit $11.2 billion in December. That was a decline of 1.9 per cent compared to November, but a jump of almost 20 per cent compared to December of 2020.

On the residential side, values were up 19 per cent compared to a year earlier, including a 22.1 per cent bump in multi-family residential, although overall residential figures slid 2.7 per cent on a month-to-month basis thanks to a six per cent fall from the November report.

The December 2021 non-residential permits were also much higher than December 2020, 21.7 per cent higher, in fact, although the $3.4 billion valuation left the sector flat compared to November of 2021.

The total value of commercial permits fell 7.9 per cent to $1.9 billion in December. Most of the decline came from Alberta’s 55.6 per cent drop, reflecting the BMO Centre permit issued the previous month.

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Construction intentions in the industrial sector rose 8.4 per cent to $762 million. A $46 million aluminium mining building renovation permit in Quebec was a notable contributor to the component.

The value of institutional building permits increased more than 17 per cent, to $720 million.

The total value of building permits in the fourth quarter of 2021 jumped more than 10 per cent to reach a new high of $33.1 billion. This surpassed the previous record of $31.5 billion set in the first quarter of 2021.

The non-residential sector rose seven per cent to $10.4 billion in the fourth quarter, 2.3 per cent below the pre-pandemic peak set in the fourth quarter of 2019. Commercial permits were up almost 10 per cent at $5.9 billion, while institutional and industrial permits rose 3.1 per cent and four per cent, respectively.

Overall in 2021, the value of building permits surged 25.6 per cent to $126.5 billion, the strongest annual growth ever recorded. However, material price and labour cost increases in the construction industry accounted for almost two-thirds of the increase.

Construction intentions in the multi-family sector hit a record high for the year, rising 21.1 per cent to $46.5 billion.

The non-residential sector was up more than 17 per cent in 2021, reaching $39.6 billion, and continuing its recovery to 2019 levels. Only the institutional component exceeded pre-pandemic levels, while the commercial and industrial components were both roughly eight per cent below 2019 totals.

 

www.statcan.gc.ca