According to new numbers from Statistics Canada, residential building permits fell in Canada over June and the biggest drop was among multi-family dwellings.
Canadian cities authorized the construction of 17,656 new dwellings in June, down 12.2 per cent from the month before. A large part of the drop was among multi-family units, which fell 16 per cent to to 11,541 units while single-family homes decreased by 4.1 per cent to 6,115 units.
Mirroring that fall, the total value of residential permits also dropped. After recording three consecutive months of gains, June saw the value of permits for multi-family dwellings fall by 18.8 per cent to $1.8 billion. Ontario, Quebec, Alberta and Nova Scotia all contributed to that decline with fewer plans for building apartments and condos.
However, single-family dwellings also saw a decrease with the total value of permits slumping 7.4 per cent to $2.2 billion in June after two months of increases. Though lower construction intentions were posted in seven provinces, Ontario, Alberta and Quebec accounted for a large part of the drop.
The non-residential sector also saw declines. Canadian municipalities issued $1.4 billion worth of commercial building permits in June, down 9.5 per cent from May. Quebec, Ontario and Saskatchewan saw the biggest slumps but British Columbia bucked the trend and posted the largest gain in the country.
Despite an impressive 40 per cent boost in May, the total value of industrial permits fell 21.5 per cent to $493 million in June. The only non-residential sector to post gain was the institutional component, which saw permits rise by 14.6 per cent to $820 million in June, the first increase in three months.
On a regional level, the value of permits was down in seven provinces in June, led by Quebec and Ontario. Quebec saw less construction intentions for commercial buildings, multi-family dwellings and industrial buildings. The story in Ontario was largely based on a drop-off in residential building.
For cities, the total value of permits was down in June among 20 of the 34 metros studied. Considering the stats recently posted by RealNet regarding new construction homes in the GTA, it shouldn’t be too surprising that Toronto saw the biggest decrease after seeing far fewer intentions for new homes.
On the upswing were Calgary, Vancouver and Thunder Bay. After a 41 per cent decline in May, Calgary posted the biggest increase among Canadian cities, largely due to commercial buildings and multi-family dwellings. Vancouver saw renewed interest in commercial buildings and Thunder Bay’s rise in permits were due to new institutional buildings.
For more details, check out the chart below…