According to Statistics Canada, investment in building construction declined 0.7 percent to $17.5 billion in September, continuing a downward trend that started in May. A decrease in the residential sector was partially offset by a small increase in the non-residential sector.
Residential construction investment decreased 1.6 percent in September, with Quebec accounting for most of the decline. However, the investment in this component was 21.6 percent higher than the pre-pandemic value in February 2020.
Investment in single family homes edged down 0.6 percent to $7.0 billion, with declines reported in eight provinces. Conversely, Nova Scotia continued to show strength in this sector (+13.3 percent), with its fourth increase in five months.
Multi-unit construction investment decreased in seven provinces, down 2.9 percent nationally to $5.8 billion. The difference in value between multi-unit and single-unit investment had been narrowing for the past few years, but a noticeable gap has opened up since the onset of the COVID-19 pandemic.
Commercial investment grew by 1.8 percent to $2.6 billion in September, with Ontario and Quebec leading the way. Office building construction projects in Toronto and Ottawa led to gains in Ontario, following three consecutive monthly declines.
Investment in the institutional component rose 2.9 percent to $1.3 billion, with a 7.9 percent increase in Quebec. Strength in that province largely stemmed from educational building projects in the cities of Montréal and Laval.
Industrial construction investment edged up 0.1 percent to $824 million, with gains reported in five provinces. Saskatchewan showed the largest monthly percentage increase (+11.5 percent), reflecting investment in utility and agricultural buildings.
Overall, non-residential construction investment rose 1.8 percent to $4.8 billion. Despite eight increases since the beginning of the year, non-residential investment was 6.3 percent lower than pre-pandemic values.