Contractors took out $4.8 billion in building permits in November, down 11.8% from October, the result of widespread declines in both residential and non-residential sectors. It was the third double-digit decrease in four months.
Intentions fell in all provinces except Alberta, Saskatchewan and Nova Scotia.
November's level, the lowest since February 2007, was 22.6% below last year's monthly average.
The value of non-residential permits fell 15.2% to $2.1 billion, the second consecutive monthly decrease. This drop occurred mainly as a result of declines in Quebec, Ontario and British Columbia.
In the residential sector, the value of building permits declined by 9.0% to $2.7 billion, a level not seen since January 2005. Intentions declined for both single- and multi-family permits. Provincially, Ontario and British Columbia registered the largest decreases in both sectors.
On a year-to-date basis, the total value of building permits issued by municipalities from January to November amounted to $65.7 billion, down 3.9% from the total for the first 11 months of 2007.
Chart 1
Value of permits decreases in November
The year-to-date value of permits in the residential sector decreased by 8.5%, while intentions in the non-residential sector were 3.3% higher.
Note to readersUnless otherwise stated, this release presents seasonally adjusted data, which eases comparisons by removing the effects of seasonal variations. The Building Permits Survey covers 2,400 municipalities representing 95% of the population. It provides an early indication of building activity. The communities representing the other 5% of the population are very small, and their levels of building activity have little impact on the total. The value of planned construction activities shown in this release excludes engineering projects (e.g., waterworks, sewers or culverts) and land. For the purpose of this release, the census metropolitan area of Ottawa–Gatineau (Ontario/Quebec) is divided into two areas: Gatineau part and Ottawa part. |
Non-residential sector: Declines in all three components
Intentions in all three components of the non-residential sector declined for a second consecutive month.
In the commercial component, the value of permits fell 11.9% to $1.1 billion, the result mainly of lower demand for office building permits in British Columbia and Ontario.
In the institutional component, intentions fell by 18.8% to $597 million. The decrease came mostly from lower construction intentions in educational and medical projects in Ontario, British Columbia and Quebec. In contrast, Alberta recorded a 131.5% rise to $351 million, a third consecutive increase.
In the industrial component, contractors took out permits worth $316 million, down 19.6%, the second consecutive decline. The decrease resulted mostly from manufacturing buildings in Quebec and utility buildings in Ontario.
Residential sector: Intentions down for both single- and multi-family permits
The value of single-family permits decreased 8.0% to $1.8 billion, the fifth consecutive monthly retreat. All provinces, except Newfoundland and Labrador, Nova Scotia and New Brunswick, recorded a decline in the value of single-family permits in November.
The value of multiple-family permits fell below the $1-billion mark for the first time since February 2007. Municipalities issued $956 million worth of permits for multi-family dwellings in November, down 10.7%, the fourth consecutive monthly decline. Provincially, the largest declines (in dollars) occurred in Ontario and British Columbia. Alberta recorded a third increase in a row; however, its value in November was still 46.4% below the monthly average of 2007.
Municipalities approved 13,893 new dwellings in November, a 4.6% decline from October. Of these, 6,839 were multi-family units, down 2.2%, while 7,054 were single-family units, a 6.8% decline.
Chart 2
Both the residential and non-residential sectors decline
Permits down in most provinces
The value of building permits fell in seven provinces in November.
The most significant decreases occurred in Ontario, where the value of permits fell 16.6% to $1.5 billion. In Quebec, intentions declined 18.6% to $1.1 billion and, in British Columbia, they dropped 28.9% to $607 million. These decreases came from both the residential and non-residential sectors.
In contrast, Alberta, Saskatchewan and Nova Scotia reported increases in the total permit values, mainly the result of gains in the non-residential sector.
Metropolitan areas: Large decreases in Toronto, Vancouver and Ottawa
The value of permits fell in two-thirds (65%) of the 34 census metropolitan areas in November.
The largest declines occurred in Toronto, Vancouver and Ottawa. In Toronto, the decrease came from the residential sector, while in Ottawa, the non-residential sector registered a decline. Vancouver recorded decreases in both sectors.
In Calgary, permits rose for a second consecutive month, the result of higher multiple-family permits and gains in the institutional component.
Available on CANSIM: tables 026-0001 to 026-0008 and 026-0010.
Definitions, data sources and methods: survey number 2802.
The November 2008 issue of Building Permits (64-001-XWE, free) will be available soon.
The December building permit estimate will be released on February 5, 2009.