Value of Canadian building permits reaches record high of $9.9 billion in January

Wednesday, 03 March 2021 21:39:07 (GMT+3)   |   San Diego
       

According to Statistics Canada, the value of building permits issued in January reached a record high total value, rising 8.2 percent to $9.9 billion and surpassing the previous record of $9.6 billion set in April 2019. These gains were driven primarily by the residential sector.

The value of permits issued in the residential sector increased 10.6 percent to $7.1 billion in January—rising past the previous peak of $6.5 billion posted two months earlier. Provincial highs were reported in Ontario, Quebec, New Brunswick and Manitoba.

The majority of the rise in the residential sector was attributable to single-family homes, which climbed 15.1 percent to a record $3.5 billion—the eighth increase in nine months. Continuing the upward trend observed since October, the value of single-family permits issued in Quebec soared, rising 40.3 percent. Much of the gain came from regions outside of census metropolitan areas (CMAs).

Multi-family permits increased 6.5 percent to $3.5 billion, mainly driven by higher construction intentions in Ontario (+17.1 percent), where several permits in excess of $100 million were issued for condominium apartments in the CMA of Toronto. Conversely, the value of multi-family building permits in Quebec fell for a fifth consecutive month in January.

The total value of permits issued for non-residential buildings rose 2.6 percent to $2.8 billion in January after a 10.8 percent drop in December.

Following three consecutive monthly declines, industrial permits bounced back to average 2020 levels, increasing 31.7 percent to $535 million in January. High-value permits for an Amazon warehouse in Lachine, Quebec, and for two Eglinton Crosstown light rail transit stations in Toronto helped reverse the downward trend.

The value of commercial permits increased 3.3 percent to $1.5 billion. Six provinces posted increases in this component, led by Ontario (+14.7 percent) and Quebec (+20.4 percent).

Within the institutional component, municipalities issued permits worth $781 million, 11.8 percent lower than December. Values in Newfoundland and Labrador returned to typical levels following a $170 million hospital renovation permit issued in Corner Brook the previous month, pushing the national total lower.


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