According to Statistics Canada, Canadian municipalities issued $8.8 billion worth of building permits in December, up 6.0 percent from November and the fourth consecutive monthly increase. The gain was largely due to higher construction intentions for multi-family dwellings and commercial buildings, with both components hitting record highs.
The value of residential building permits was up 4.2 percent in December to $5.3 billion. Six provinces posted increases, led by British Columbia.
In the multi-family dwelling component, the value of permits rose 11.1 percent to a record high $3.3 billion, marking the fourth consecutive monthly increase. Six provinces reported gains, led by British Columbia (+$155 million) and Ontario (+$138 million).
The value of building permits for single-family dwellings was down 5.4 percent to $2.0 billion. Four provinces posted declines, most notably Ontario, which reported its lowest value since March 2014.
In December, municipalities approved the construction of 20,210 new dwellings (+2.9 percent), consisting of 15,678 multi-family units (+5.0 percent) and 4,532 single-family units (-3.6 percent).
The value of building permits issued for non-residential structures rose 8.9 percent in December to $3.5 billion. Increases were reported in seven provinces, most notably British Columbia.
In the commercial component, the value of permits rose 14.6 percent to a record high of $2.3 billion in December. Eight provinces recorded advances, led by British Columbia (+$150 million) and Ontario (+$112 million).
The value of industrial building permits was up 11.9 percent to $588 million, mainly as a result of higher construction intentions for maintenance buildings.
In contrast, the value of institutional permits fell 10.6 percent to $606 million, the third consecutive monthly decrease. Lower construction intentions for hospitals were the largest factor in the decline.
As for a full-year analysis, the total value of building permits rose 4.7 percent in 2018 to $99.7 billion, the fifth consecutive annual increase. Higher construction intentions for multi-family dwellings and commercial buildings were the main factors behind the increase. Four provinces reported gains, led by British Columbia and Quebec. The largest decline was in Ontario, where the value of permits was down 2.2 percent to $38.2 billion.
In the residential sector, the value of permits totaled $62.8 billion, up 5.2 percent from 2017 and continuing the upward trend that started in 2010. The value of multi-family permits rose 22.7 percent to $35.0 billion in 2018, while the value of single-family permits (-10.7 percent to $27.9 billion) fell for the first time since 2013. The CMA of Toronto led the increase for multi-family permits in 2018, and has been following a similar growth pattern to other major CMAs since 2010. Nationally, 2018 marked the first time where the value of multi-family permits exceeded the single-family component on an annual basis.
Construction intentions in the non-residential sector rose 3.7 percent in 2018 to $36.9 billion. Increases in the commercial component (+18.4 percent to $21.6 billion) more than offset the decline for institutional buildings (-22.1 percent to $8.0 billion). The decrease in institutional building permits may be due, in part, to the end of the Post-Secondary Institutions Strategic Investment Fund, as applications to the program closed in February 2018. Meanwhile, permits for industrial buildings rose 3.6 percent to $7.3 billion. Five provinces reported gains in the non-residential sector, led by British Columbia (+$1.5 billion) and Quebec (+$1.2 billion). The largest decline was in Ontario, where the value of non-residential building permits declined by $1.3 billion.