According to Statistics Canada, the value of building permits rose for a second straight month, up 3.5 percent to $8.2 billion in October. All building components increased with the exception of the institutional component, which declined 14.3 percent, offsetting much of the gain from the previous month.
The value of permits for non-residential buildings increased $171.7 million to $3.3 billion in October, the second consecutive monthly gain.
The commercial component, which refers to buildings used in the trade or distribution of goods and services, was the main contributor to the 5.5 percent increase in the non-residential sector. Permits in Quebec for warehouses, as well as permits in Ontario for office buildings, warehouses, and recreation buildings, contributed to the rise in the value of commercial building permits in October.
Nationally, the value of permits for the industrial component passed the $700 million-mark for the first time in five years. The gain stemmed primarily from higher construction intentions for factories and plants in Alberta. Nationally, the year-to-date value of permits for the industrial component totaled $5.3 billion, $1.0 billion higher than the same period in 2016.
In October, the value of permits for both single-family and multi-family dwellings increased in the CMAs of Montréal and Toronto. However, in the Vancouver CMA, both residential components fell, offsetting the gains in September.
Municipalities in the CMA of Montréal issued $538.1 million in permits for multi-family dwellings in October, higher than in Toronto ($409.2 million) and Vancouver ($330.6 million). In regards to single-family homes, Toronto registered $451.3 million in permits, followed by Vancouver ($148.1 million) and Montréal ($122.4 million).
The Montréal CMA issued permits approving the construction of 2,956 new units, stemming mainly from multi-family dwellings (2,720). October marked the fifth consecutive month where the number of units approved for multi-family dwellings exceeded 2,000. Vancouver approved the construction of 1,860 new units for multi-family homes, while Toronto (1,691) approved fewer despite having a higher value for the component.