Total Value of Canadian Building Permits Increases in June

Statistics Canada (StatCan) reported on Wednesday (8-9-23) that the total monthly value of building permits in Canada increased 6.1% in June to $11.6 billion (CAD), with a substantial monthly increase of 67.2%, or $619.3 million, in the non-residential institutional component. On a constant dollar basis (2012=100), the total value of building permits increased 7.0% to $6.8 billion.

The total monthly value of residential permits fell 1.8% to $6.9 billion in June. Across Canada, a total of 22,000 permits for new dwellings were issued in June. Seven provinces post gains, but those were easily offset by declines of 11.4% in Ontario, 20.5% in New Brunswick, and 51.4% in Saskatchewan.

The total monthly value of non-residential permits increased 20.4% to $4.7 billion in June. A decline of 7.7%, or $176.0 million, in commercial construction intentions was easily offset by gains in the industrial component—up 51.0%, or $349.9 million—and the institutional component—up 67.2%, or $619.3 million.

2023Q2 Summary:

The total value of building permits in Q2 declined 1.0% from Q1 to $32.2 billion, as the non-residential sector declined 9.6% to $12.0 billion, following Q1’s record high for the sector.

StatCan notes that despite the overall decline, the residential sector broke a three-quarter losing streak, increasing 4.9% in Q2 to $20.3 billion. Year-over-year, the value of construction intentions in the residential sector remained below the $24.2 billion in 2022Q2.