Canadian municipalities issued building permits worth $6.3 billion in August, down 21.2 percent from July, according to government reports released Monday. This decline followed a 21.4 percent increase the previous month and was the result of lower construction intentions in both non-residential and residential sectors. With this decline, the trend in the value of building permits has become relatively flat since the beginning of 2013.
With the exception of British Columbia and Newfoundland and Labrador, every province registered declines in August with Ontario, Alberta and Quebec posting the largest decreases.
In the non-residential sector, the total value of building permits fell 37.9 percent to $2.4 billion in August, its lowest level since February 2013. This drop offset a 47.3 percent increase in July. Every province, except Newfoundland and Labrador, posted declines.
The total value of permits in the residential sector decreased 5.4 percent to $3.9 billion in August, following a 4.2 percent increase in July. Lower construction intentions were posted in six provinces with Ontario, Quebec and Alberta registering the largest decreases. British Columbia, Saskatchewan, Nova Scotia and Prince Edward Island recorded increases.
Canadian municipalities issued $1.4 billion worth of commercial building permits in August, down 45.8 percent from July, when commercial construction intentions were $2.6 billion. The decline originated from lower construction intentions in a variety of commercial buildings, including office buildings, retail and wholesale outlets, retail complexes and recreational facilities. Decreases were posted in eight provinces, led by Ontario, followed by Alberta and Quebec. Newfoundland and Labrador and Saskatchewan were the two provinces to post gains.
Building permits for multi-family dwellings decreased 8.3 percent to $1.7 billion in August, the third monthly decline this year. Declines were reported in half of the provinces, led by Ontario and followed by Quebec. British Columbia registered the largest increase, with Saskatchewan a distant second.
Construction intentions for single-family dwellings fell 3.0 percent to $2.2 billion in August. The decline in August failed to offset the increase in July. This was the second decrease in three months, bringing the year-to-date value down 7.5 percent. Lower construction intentions were posted in six provinces, with Ontario, Quebec and Manitoba accounting for most of the decline at the national level.
Nationally, municipalities approved the construction of 17,471 new dwellings in August, down 0.7 percent from July. The decline was attributable to lower construction intentions for single-family dwellings (down 3.4 percent to 6,087 dwellings), which offset an increase in multi-family dwellings (up 0.8 percent to 11,384 units).