Value of Canadian Building Permits Rises 8.8% in August

On Wednesday, Statistics Canada (StatCan) reported that the total value of building permits issued in Canada rose 8.8% in August to CA$13.6 billion, an increase of $1.1 billion from July.

On a constant dollar basis (2023=100), the total value increased 8.6% month-over-month and was up 12.4% year-over-year.

Residential Construction

Residential construction intentions rose $1.1 billion to $8.5 billion in August. The increase was driven by the multifamily component, which grew $1.1 billion to $5.8 billion, led by Ontario ($696.0 million), British Columbia ($189.8 million), and Alberta ($115.9 million).

The single-family component edged down $0.7 million to $2.6 billion, with declines led by Alberta (-$32.7 million), the Northwest Territories (-$10.9 million), and Manitoba (-$7.9 million).

Across Canada, 21,800 multifamily and 4,000 single-family dwellings were authorized in August, a 12.8% increase from the previous month. Over the 12-month period ending in August, a total of 299,500 dwellings were authorized, down from 305,500 in the preceding 12-month period.

Nonresidential Construction

The value of nonresidential building permits edged down $29.8 million to $5.1 billion in August. The decline was driven by a $380.0 million decrease in the commercial component to $2.2 billion, largely offset by increases in industrial and institutional construction intentions.

The industrial component rose $317.3 million to $1.1 billion, with gains led by Alberta ($169.3 million) and Quebec ($134.8 million). Institutional construction intentions increased $32.9 million to $1.8 billion.