Canadian Investment in Building Construction Up in March, Completing Strong Q1 Results

Statistics Canada (StatsCan) reported today (5-17-22) that the investment in building construction in March rose 1.8% to $20.3 billion (CAD), a new record high. Gains were reported in both the residential and non-residential sector. On a constant dollar basis (2012=100), investment in building construction increased 1% to $12.3 billion.

Overall, residential construction investment increased for a sixth consecutive month in March, up 1.7% to $15.1 billion. Ontario was responsible for approximately 75% of the total monthly increase, bringing the national total to just below the record high reached in April 2021.

Investment in single family homes increased 4.3% to $8.4 billion. Multi-unit construction investment decreased -1.4% to $6.7 billion in March. This ended five months of consecutive growth for the component, as declines in six provinces more than offset the strong gains reported in British Columbia (+3.8%).

Overall, non-residential construction investment increased 2.0% in month-over-month in March, marking the ninth consecutive monthly increase. Quebec was responsible for almost 50% of the total gains in March. With all provinces reporting growth, commercial investment increased by 2.4% to $ 2.9 billion. Industrial construction investment climbed 1.9% higher, to $910 million, with Ontario (+2.6%) and Quebec (+2.7%) major contributors to the upward movement in the sector. While investment in the institutional component increased 1.1% to $ 1.4 billion in March, marking the third month in a row of growth.

2022 Q1 Results:

In Q1 of 2022, the total value of investment in building construction increased 9.2% to $59.7 billion. Almost all of the quarter’s overall gains were in the residential sector, which jumped 11.0% to $44.4 billion, while the non-residential sector rose by 4.3% to $15.3 billion.

Residential investment in the single-unit component rose 11.2% for the quarter to $24.2 billion, with Ontario (+12.6%) accounting for half of the quarterly change. The multi-unit component was up 10.9% with all provinces, except Saskatchewan, reporting growth compared with the Q4 of 2021.

Investment in the non-residential sector was up 4.3%, with all its sub-components increasing compared with Q4 of 2021 The commercial component, which contributed the most to the non-residential sector, gained 5.1% to $8.5 billion—its fifth consecutive quarterly expansion. Investments in the industrial component increased 6.1% to $2.7 billion, while the institutional component rose 1.5% to $4.1 billion.