Value of Building Permits in Canada Climbs Higher in January

On Thursday, Statistics Canada (StatCan) reported that the total value of building permits in Canada increased 13.5% month-over-month in January to $10.8 billion (CAD), rebounding from December 2023’s decline of 11.5%. On a constant dollar basis (2017=100), the total value of building permits was up 14.0% to $6.7 billion in January.

Residential

The total monthly value of residential permits increased 12.6% to $6.5 billion in January, following a weak December.

Gains in the residential sector were led by a strong rebound in multi-unit construction intentions—up 35.1% to $4.0 billion. However, overall residential growth was tempered by a decline in the total value of single-family dwelling permits, which were down 10.3% to $2.6 billion. StatCan notes that declines occurred in 9 provinces.

Across Canada, 15,200 new dwellings in multi-unit buildings and 4,000 new single-family dwellings were authorized in January.

Nonresidential

The total monthly value of nonresidential permits increased 14.8% to $4.2 billion in January, following a 4.0% decline in December.

StatCan notes that the growth in the nonresidential sector is attributed to the commercial component, which increased 34.5% to $2.3 billion—the highest level recorded since April 2023. A $200 million permit for a new data center in Lévis, Quebec, greatly contributed to the growth observed in January.