According to Statistics Canada, Canadian municipalities issued $8.4 billion in building permits in January, up 5.6 percent following a 2.5 percent rise in December. The value of permits for three components rose, while industrial buildings (-18.6 percent) and single-family dwellings (-1.3 percent) declined. The January increase was largely due to higher construction intentions for multi-family dwellings in Ontario.
The value of permits for multi-family dwellings in Ontario rose 71.0 percent (+$404.3 million) to $974.0 million in January, more than offsetting the 39.7 percent decline (-$374.7 million) reported the previous month. Nationally, apartments accounted for approximately three-quarters of the value of permits for multi-family dwellings in January, while row houses made up just under 18 percent. The rest of the multi-family dwelling component is comprised of permits for doubles such as semi-detached homes, and minor residential additions and renovations (permits under $50,000).
In January, 16 of the 36 census metropolitan areas (CMAs) reported gains, led by Toronto. The total value of permits reported by municipalities in Toronto increased 25.5 percent to $1.8 billion in January, following a 14.0 percent decline in December. The increase mainly stemmed from multi-family dwellings, which hit $590.3 million in January, bouncing back from $311.0 million in December, the lowest point in 2017. The second largest gain was reported in the CMA of London, up 89.3 percent (+$77.5 million) from December, also due to multi-family dwellings.