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Building permits, June 2018

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Released: 2018-08-08

Building permits — Canada

$8.1 billion

June 2018

-2.3% decrease

(monthly change)

Building permits — N.L.

$74.4 million

June 2018

46.6% increase

(monthly change)

Building permits — P.E.I.

$26.2 million

June 2018

-27.7% decrease

(monthly change)

Building permits — N.S.

$101.9 million

June 2018

-16.7% decrease

(monthly change)

Building permits — N.B.

$106.8 million

June 2018

17.2% increase

(monthly change)

Building permits — Que.

$1,443.7 million

June 2018

-8.4% decrease

(monthly change)

Building permits — Ont.

$3,330.1 million

June 2018

1.3% increase

(monthly change)

Building permits — Man.

$199.8 million

June 2018

-15.6% decrease

(monthly change)

Building permits — Sask.

$108.2 million

June 2018

-29.2% decrease

(monthly change)

Building permits — Alta.

$1,215.6 million

June 2018

0.5% increase

(monthly change)

Building permits — B.C.

$1,454.9 million

June 2018

-1.8% decrease

(monthly change)

Building permits — Y.T.

$20.7 million

June 2018

7.1% increase

(monthly change)

Building permits — N.W.T.

$6.8 million

June 2018

-9.2% decrease

(monthly change)

Building permits — Nvt.

F

June 2018

F

(monthly change)

In June, Canadian municipalities issued $8.1 billion worth of building permits, down 2.3% from the previous month. The decline was the result of lower construction intentions for residential buildings, following a strong May.

Chart 1  Chart 1: Total value of building permits
Total value of building permits

Chart 2  Chart 2: Value of building permits for residential and non-residential sectors
Value of building permits for residential and non-residential sectors

Residential sector: Multi-family dwellings account for majority of the decline

In the residential sector, municipalities issued $5.2 billion worth of building permits in June, down 5.7% from May. New Brunswick was the only province to post an increase.

The value of multi-family dwelling permits dropped 8.0% to $2.8 billion in June. This followed a record high of $3.1 billion the previous month. The decrease was led by Alberta, where municipalities issued permits for 865 fewer units in June than they did in May. British Columbia (+2.1%) was the only province to register an increase.

The value of permits in the single-family dwelling component was down 2.9% to $2.4 billion in June. Six provinces posted declines, with Ontario (-$37 million) accounting for slightly over half of the drop.

Municipalities approved the construction of 19,111 new dwellings in June, down 10.5% from May. The decline was mainly attributable to a 14.3% drop in multi-family dwellings, to 13,667 new units. The number of new single-family dwellings increased 0.8% to 5,444 new units.

Chart 3  Chart 3: Month-to-month change in value of residential building permits, June 2018
Month-to-month change in value of residential building permits, June 2018

Non-residential sector: All components register gains

The value of building permits in the non-residential sector rose 4.6% in June to $2.9 billion. Increases in Alberta and Ontario more than offset the declines in six provinces.

In the institutional component, the total value of permits was up 16.3%, to $609 million. This gain followed four consecutive monthly declines. Eight provinces registered increases, led by Ontario and Newfoundland and Labrador.

The value of industrial permits rose 5.3% to $603 million, a third consecutive monthly increase. The gain in June was largely the result of a few high-value permits issued for agricultural and manufacturing buildings in Ontario.

Meanwhile, in the commercial component, municipalities issued $1.7 billion worth of permits, up 0.8% from May. The increase was the result of higher construction intentions in Alberta (+$94 million), which offset the small declines reported in every other province except Prince Edward Island.

Chart 4  Chart 4: Month-to-month change in value of non-residential building permits, June 2018
Month-to-month change in value of non-residential building permits, June 2018

Provinces and census metropolitan areas: Quebec reports declines in all components

The total value of building permits was down in six provinces in June, with the largest decline in Quebec. Meanwhile, construction intentions were down in 20 of the 36 census metropolitan areas (CMAs). In particular, Toronto and Calgary reported notable declines following strong numbers in May.

In Quebec, the value of permits fell 8.4% to $1.4 billion in June, as each component declined. This marked the third consecutive monthly decrease for the province. Five of the six CMAs in Quebec were down, the exception being Saguenay (+34.9%). The CMA of Québec reported $70 million worth of building permits in June, its lowest value since January 2006.

Conversely, Ontario issued $3.3 billion worth of building permits in June (+$43 million). The gain was the result of higher construction intentions for industrial and institutional buildings. Barrie reported the largest increase of the CMAs, issuing $105 million worth of building permits. The increase in Barrie mainly reflected higher construction intentions for residential dwellings.

Second quarter 2018

The value of permits fell 1.8% to $24.3 billion in the second quarter, following a 2.4% rise in the first quarter. Despite the decline in the second quarter, the year-to-date value was $2.0 billion higher than the value of the first two quarters of 2017.

The value of permits in the residential sector decreased 0.3% in the second quarter to $15.8 billion. An increase in the value of permits for multi-family dwellings (+$377 million) almost offset a decline from the single-family dwelling component (-$420 million). In the non-residential sector, declines in the institutional and industrial components contributed to a 4.6% drop in the second quarter, while the commercial component rose slightly.




  Note to readers

Unless otherwise stated, this release presents seasonally adjusted data, which facilitates month-to-month comparisons by removing the effects of seasonal variations. For information on seasonal adjustment, see Seasonally adjusted data – Frequently asked questions.

The Building Permits Survey covers over 2,400 municipalities, representing 95% of the Canadian population. The communities representing the other 5% of the population are very small and their levels of building activity have little impact on the total for the entire population.

Building permits data are used as a leading indicator of activity in the construction industry.

The value of planned construction activities presented in this release excludes engineering projects (such as waterworks, sewers or culverts) and land.

For the purposes of this release, the census metropolitan area of Ottawa–Gatineau (Ontario/Quebec) is divided into two areas: the Ottawa part and the Gatineau part.

Unless otherwise specified, the highlights refer to seasonally adjusted current dollars and are ranked in terms of dollar change rather than percentage change.

Revision

Unadjusted data for the current reference month are subject to revision based on late responses. Data for the previous month have been revised. Seasonally adjusted data are revised for the previous two months.

Trend-cycle estimates have been added to the charts as a complement to the seasonally adjusted series. Both the seasonally adjusted and the trend-cycle estimates are subject to revision as additional observations become available. These revisions could be large and even lead to a reversal of movement, especially at the end of the series. The higher variability associated with the trend-cycle estimates is indicated with a dotted line on the chart.

For information on trend-cycle data, see the StatCan Blog and Trend-cycle estimates – Frequently asked questions.

Next release

Data on building permits for July will be released on September 6.

Contact information

For more information, or to enquire about the concepts, methods or data quality of this release, contact us (toll-free 1-800-263-1136; 514-283-8300; STATCAN.infostats-infostats.STATCAN@canada.ca) or Media Relations (613-951-4636; STATCAN.mediahotline-ligneinfomedias.STATCAN@canada.ca).

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