The Value of Building Permits Increased 1.8% to $6.4 Billion in July

After declining 5.3% in June, the value of building permits increased 1.8% to $6.4 billion in July, mainly as a result of multi-family dwelling permits in Central Canada and industrial construction intentions in Saskatchewan.

In the residential sector, the value of building permits rose 2.7% to $3.7 billion, mainly as a result of an increase in the value of multi-family dwelling permits in Ontario, Quebec and Manitoba.

In the non-residential sector, the value of building permits edged up 0.6% to $2.7 billion. An increase in industrial construction intentions more than offset declines in both commercial and institutional permits.

Residential: Increase in multi-family dwelling permits

After two consecutive monthly declines, municipalities issued $1.5 billion worth of permits for multi-family housing in July, up 9.6% from June.

At the same time, single-family permits declined 1.4% to $2.2 billion. Ontario accounted for more than half of the decline, while Quebec posted a second consecutive monthly increase in single-family housing.

Municipalities approved 19,518 new residential dwellings in July, up 12.0%. This was due to a 24.4% increase in multi-family units. The number of single-family units approved declined 1.4% to 8,257.

Non-residential: Increase in industrial construction intentions

Following a volatile pattern, the value of industrial permits increased 26.3% to $503 million, following a 29.4% decline in June. The increase in July was mostly explained by the higher value of permits for mining buildings in Saskatchewan.

Construction intentions for commercial buildings declined 3.7% to $1.5 billion, a second consecutive decline after reaching $1.7 billion in May. The decrease was due mainly to lower construction intentions for trade and services buildings and warehouses. British Colombia and Ontario posted declines in several commercial categories.

After three consecutive monthly increases, the value of institutional permits decreased 4.0% to $759 million, mainly as a result of declines in permits for health buildings in Ontario, Alberta and Quebec.

Permits up in six provinces

The value of building permits increased in six provinces in July. The most significant increases occurred in Quebec (+13.2% to $1.3 billion), as a result of gains in both the residential and non-residential sectors.

While the increase in Saskatchewan was due to the non-residential sector, both the residential and non-residential sectors contributed to the gain in Manitoba.

In contrast, British Columbia and Alberta posted declines in both the residential and non-residential sectors.

Metropolitan areas: Large gains in Kitchener and Montréal

Of the 34 census metropolitan areas, 18 recorded increases in the value of building permits in July.

The largest increases occurred in Kitchener, with gains mainly in non-residential sectors, followed closely by Montréal and Saskatoon.

In contrast, the value of permits fell in Vancouver and Edmonton in July, as a result of declines in the residential and non-residential sectors.

Available on CANSIM: tables 026-0001 to 026-0008, 026-0010 and 026-0015.

Definitions, data sources and methods: survey number 2802.

The July 2008 issue of Building Permits (64-001-XWE, free) will be available soon.

The August building permit estimate will be released on October 6.

To order data, contact Jasmine Gaudreault (toll-free 1-800-579-8533; 613-951-6321; bdp_information@statcan.gc.ca). For more information, or to enquire about the concepts, methods or data quality of this release, contact Bechir Oueriemmi (613-951-1165), Investment and Capital Stock Division.