Total Value of Canadian Building Permits Declined in March 2022

Statistics Canada (StatsCan) reported on Monday (5-9-22) that the total value of building permits in Canada declined -9.3% in March to a value of $11.7 billion (CAD). The decline was mainly due to the non-residential sector, which was down -29.5% to $3.7 billion. On a constant dollar basis (2012=100), the total value of building permits was down -11.5% to $7.6 billion in March.

Residential permits in March increased 4.7% to $7.9 billion nationally. Construction intentions for single family homes were up 3.3%, reaching the highest value since March 2021, with Ontario registering the largest gain of +12.0%. The value of multi-family building permits rose 6.0% nationally, helped by high value projects throughout the country.

The total value of non-residential sector permits fell 29.5% in March, largely due to the institutional component declining -58.5%, returning to more normal levels after two large hospital permits were issued in February. Commercial building intentions in March saw a -7.2% decline, while industrial construction was up +2.8%, the only component to post an increase.

In the Q1 of 2020, the total value of building permits increased 5.3% when compared to Q4 of 2021, to $34.9 billion.

In Q1 of 2021, the non-residential sector jumped 18.8% to a record high of $12.5 billion, largely due to the institutional component gaining +58.6%, which was the result of two hospital permits being issued in Vancouver and Quebec, valued at a combined $1.9 billion. The industrial component was up +15.3% and commercial components increased 2.0% during the quarter.

The residential sector saw a -1.0% decline in Q1 of 2022 when compared with Q4 of 2021, with a decrease in multi-family permits of -3.0% more than offsetting a slight gain in single-family construction intentions of +1.3%.

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