Canadian Building Permits Declined in December and During All of Q4

Statistics Canada (StatCan) reported today (2-2-23) that monthly seasonally adjusted value of building permits in Canada declined 7.3% in December to $10.3 billion (CAD). On a constant dollar basis (2012=100), the total value of building permits dropped 7.4% to $6.1 million.

The total value of residential permits fell 8.4% to $6.5 billion in December. Construction intentions in the single-family home sector declined 3.9%. Multifamily permit values fell 11.6%, with seven province posting declines.

The total value of non-residential permits declined 5.3% to $3.8 billion in December. While seven provinces posted growth, Ontario’s losses offset all other gains. Construction intentions in the industrial sector fell 23.4% in December, following a record high in November. The value of commercial permits edged 2.2% higher in December. The total value of institutional building permits posted a 0.9% month-over-month gain.

2022Q4 Review:

StatsCan is reporting that the total value of permits in Q4 declined 7.8% from Q3 to $31.0 billion.

The residential sector declined for the second consecutive quarter, with construction intentions falling 13.0% to $19.8 billion. Single-family permits declined 13.8%, while multifamily permits dropped 12.3%.

The non-residential sector increased by 2.9% to $11.2 billion, led by the industrial component, which sharply increased by 29.5% to a record quarterly high of $2.8 billion. Commercial permit values remained relatively stable (+0.3%), while institutional permit values fell by 12.3% for a third consecutive quarterly decrease.