Investment in Canadian Building Construction Trends Higher in May

On Thursday, Statistics Canada (StatCan) reported that investment in building construction edged up 0.8% month-over-month to $20.8 billion (CAD) in May, rebounding from a 2.0% decrease in April. On a constant dollar basis (2017=100), investment in building construction was up 0.9% to $12.7 billion in May.

Residential

Investment in residential building construction rose 0.9% to $14.4 billion in May. Monthly increases were observed in five provinces and territories, led by Quebec, up $178.3 million to $2.9 billion, and Alberta, up $26.3 million to $1.8 billion. These gains were partially offset by losses in Ontario, down $30.2 million to $5.6 billion, British Columbia, down $22.6 million to $2.5 billion, and the remaining six provinces and territories.

Overall, investment in single-family homes fell 1.3% to $6.8 billion, the second monthly decline in a row. Declines were recorded in 9 out of 13 provinces and territories, led by British Columbia which was down $67.4 million to $833.2 million.

Multi-unit construction investment grew 2.9%, up $215.4 million to $7.6 billion, driven by Quebec which posted a gain of $189.4 million to $1.6 billion.

Nonresidential

Investment in nonresidential construction rose slightly in May, increasing 0.6% to $6.4 billion. Growth in both the commercial component, up $28.9 million to $3.2 billion, and institutional component, up $17.3 million to $1.8 billion, was tempered by declines in the industrial component, down $6.2 million to $1.4 billion.

Institutional investment saw its 11th straight monthly growth in May, while commercial investment recorded its first increase since October 2023. British Columbia led the monthly growth in both the commercial component, up $29.6 million to $565.8 million, and institutional component, up $13.0 million to $326.5 million.