Total Value of Canadian Building Permits Declined in May

Statistics Canada (StatsCan), reported on Friday (7-12-24), that the total value of building permits was in May was $11.7 billion (CAD), down 12.2% from a record high of $13.4 billion in April. On a constant dollar basis (2017=100), the total monthly value of building permits declined 12.5% in May, following a 23.0% increase in April.

Residential

In May the value of residential building permits fell 16.3% to $7.1 billion. British Columbia drove the nationwide decline – down 53.7 or $1.1 billion in May, following an unusually strong April, led by a record high value of multi-unit permits in the province.

Excluding British Columbia, residential construction intentions declined 3.8% for the remaining provinces and territories in May. Monthly declines were observed in Ontario – down 7.9% or $261.2 million, Alberta – was down 10.9% or $122.4 million, while all three Maritime provinces were collectively down 4.5% or $17.7 million.

Across Canada, 22,700 dwelling units were authorized in May, contributing to the 12-month cumulative sum of 267,600 units since June 2023.

Non-Residential

The value of non-residential permits decreased 5.0% to $4.6 billion in May 2024. Declines in the institutional sector – down 18.0% or $236.4 million, and the commercial sector – down 7.4% or $194.1 million, more than offset growth in the industrial component which was up 20.6% or $187.2 million.

Despite month-over-month increases in non-residential permit values in six provinces and two territories, the substantial decline in British Columbia down 44.1% or $420.3 million weighed heavily on the sector in May. Excluding British Columbia, construction intentions in the non-residential sector increased 4.5% month over month.