Good start to the year for building intentions
By Adam Freill
Commercial Construction Industrial Institutional ResidentialStatistics Canada reports a double-digit rise in building permit values for January on strength in both residential and non-residential sectors.
Building permits, January 2024. (Source: Statistics Canada, Table 34-10-0285-01, Building permits, by type of building and type of work.)
Construction intentions in Canada’s building sector rebounded significantly in January; a welcome development following December’s 11.5 per cent drop. According to figures from Statistics Canada, month over month, the total value of building permits in Canada rose 13.5 per cent, reaching $10.8 billion, in January.
Growth came from both the residential and non-residential sectors. The housing side saw an increase of 12.6 per cent to $6.5 billion, while the non-residential sector grew 14.8 per cent, to reach $4.2 billion for the month.
Gains in the residential sector were led by a strong rebound in multi-unit construction intentions, which rose 35.1 per cent to $4 billion. Ontario’s 29 per cent gain was a major contributor to the increase, as were Quebec 61.6 per cent gain and the 36.7 per cent rise in British Columbia. Across Canada, 15,200 new dwellings in multi-unit buildings were authorized in January.
Overall residential growth in January was tempered by a decline in the total value of single-family dwelling permits, which fell 10.3 per cent to $2.6 billion.
On the non-residential side, growth was attributed to the commercial component, which increased 34.5 per cent to hit $2.3 billion, the highest monthly level recorded since April 2023. A $200-million permit for a new data centre in Lévis, Que., helped pace the growth. The institutional component grew 4.6 per cent, reaching $1.1 billion, while the industrial segment dropped 10.8 per cent to sit at $822 million.
