According to Statistics Canada, the value of building permits issued by Canadian municipalities increased 4.7 percent to $8.2 billion in May. This followed a 4.7 percent drop in April, the only month this year where municipalities reported a total value below the $8.0 billion mark.
In the residential sector, municipalities issued $5.5 billion worth of permits in May, up 7.7 percent from April. This was the second-highest value on record, following the $5.7 billion worth of permits issued in October 2016. Five provinces posted increases, with Ontario and British Columbia reporting the largest gains.
The multi-family dwelling component reached a record high in May, with municipalities issuing $3.1 billion worth of building permits. The increase was the result of higher construction intentions in British Columbia, Ontario and Alberta.
The value of single-family dwelling permits also rose in May, up 6.2 percent from the previous month to $2.5 billion. This was the first increase following four consecutive monthly declines. Ontario led the seven provinces that registered increases.
Municipalities approved the construction of 21,344 new dwellings in May, up 6.6 percent from April. The rise was mainly attributable to multi-family dwellings, up 7.4 percent to 15,983 new units. Single-family dwellings increased 4.3 percent to 5,361 new units.
The value of non-residential building permits declined 0.7 percent in May to $2.7 billion. Four provinces reported lower intentions, led by Alberta and Quebec.
In the commercial component, the value of building permits decreased 3.1 percent in May to $1.6 billion. Six provinces posted declines, with Quebec and Saskatchewan reporting the largest drops.
The value of institutional permits was down 3.9 percent in May to $522 million. This was the lowest reported value since July 2015, and continues an overall general decrease that began in October 2017. The decline began following the issuance of multiple permits for educational structures via the Post-Secondary Institutions Strategic Investment Fund and the construction of two new hospitals.
In contrast, the value of industrial permits increased 10.6 percent in May to $557 million. Seven provinces posted gains, led by Manitoba and New Brunswick.