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Building permits : April 2010

Building permits : April 2010

The value of building permits rose 5.4% to $6.7 billion in April, following a 12.3% advance in March. Compared with April 2009, the value of building permits has increased by 48.2%. The gain in April was due to the non-residential sector, which more than offset the decline in the residential sector.

In the non-residential sector, the value of permits rose for a third consecutive month, up 32.2% to $2.8 billion. The increase was attributable to gains in both construction intentions for institutional buildings in six provinces and in commercial permits in seven provinces.

In the residential sector, the value of permits fell 8.0% from March to $3.9 billion, mostly because of declines in single- and multi-family permits in British Columbia, Ontario and Quebec.

The total value of permits was up in five provinces, led by Ontario, Nova Scotia and Alberta, while British Columbia recorded the steepest decline.

Non-residential sector: Increases in both institutional and commercial components

The institutional component increased 70.0% to $882 million in April. The advance was largely a result of higher construction intentions for educational institutions in Ontario and medical buildings in Nova Scotia.

In the commercial component, the value of permits increased 29.1% to $1.5 billion. The advance was mostly attributable to construction intentions for office buildings and retail stores in Alberta and Ontario.

Following three consecutive monthly increases, the value of industrial building permits declined 4.7% to $415 million in April. Alberta posted the largest decrease while Ontario recorded the biggest gain.

Residential sector: Intentions down for single- and multi-family permits

The value of building permits for single-family dwellings decreased 6.0% in April to $2.6 billion, a result of declines in Quebec, Ontario and Newfoundland and Labrador.

Following a strong gain in March, municipalities issued $1.3 billion in building permits for multi-family dwellings in April, down 11.7% from a month earlier. British Columbia was by far the province with the largest decrease in the value of multi-family permits, followed by Ontario and Quebec.

Municipalities approved the construction of 18,089 new dwellings in April, down 7.3% from March. The decrease was due to an 8.2% decline in the number of multi-family dwellings to 9,237 and a 6.4% decline in the number of single-family dwellings to 8,852.

Increases seen in half the provinces

In April, the value of building permits was up in five provinces.

Ontario, Nova Scotia and Alberta posted the largest advances. In Ontario, increases in all non-residential components more than offset the decline in residential components. Nova Scotia's gain was attributable to both the institutional component and multi-family permits. In Alberta, the increase came from both the residential and non-residential sectors.

British Columbia and Quebec posted the sharpest decreases. Following a strong advance in March, British Columbia showed the biggest drop in the residential and non-residential sectors. The lower value of permits in Quebec was due to the residential sector.

Increases in half the census metropolitan areas

The total value of permits was up in 17 of the 34 census metropolitan areas.

In Edmonton, the value of permits doubled as a result of gains in all residential and non-residential components. The value of permits rose in Toronto and in Windsor, mainly because of increases in all of the non-residential sector's components.

In contrast, Vancouver and Calgary posted the largest declines. Vancouver's decrease was due to permits for multi-family dwellings and permits for institutional buildings. The decline in Calgary was attributable to all components in the non-residential sector.

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Québec Landlords Association (1)

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