View the most recent version.Information identified as archived is provided for reference, research or recordkeeping purposes. It is not subject to the Government of Canada Web Standards and has not been altered or updated since it was archived. Please "contact us" to request a format other than those available.
 |
64-001-XIE
The value of non-residential permits fell 11.9% to $1.4 billion as commercial permits hit their second lowest monthly value this year. A substantial decrease in institutional permits also contributed to the decline.
In contrast, both single- and multi-family dwelling construction intentions rose, lifting the value of housing permits 2.5% to $1.8 billion. The increase in the value of single-family dwelling permits was the fourth in a row.
On a year-to-date basis, municipalities issued building permits worth $26.8 billion during the first eight months of the year, up 11.2% from the same period in 2000. This was the highest cumulative level for any January-to-August period since 1989. Both the residential and non-residential sectors showed advances.
Regionally, the most significant growth (in dollars) came from the Montreal area (+45.5%) where the cumulative value of construction intentions in the commercial sector was double that of the first eight months of 2000. The next- highest increases - Vancouver (+16.3%) and Toronto (+5.2%) - were some distance behind. In contrast, Halifax showed the biggest decline (-38.8%), with drops in both residential and non-residential sectors.
The value of building permits for multi-family dwellings rose 6.0% to $470 million in August, while permits for single-family dwellings increased 1.3% to $1.4 billion.
Provincially, the largest gains in the residential sector in August occurred in Ontario (+4.6% to $866 million) and in Alberta (+11.6% to $307 million). In both provinces, single- as well as multi-family dwellings contributed to the advances. The largest decline in residential permits occurred in British Columbia (-14.5% to $203 million), the result of a strong decrease in the value of multi-family permits. It was British Columbia's third consecutive monthly decline in housing permits.
Despite the weak growth in the economy for the second quarter of 2001, signals from several housing indicators reflected strength in this sector. In August, housing starts were up 11.6%, sales of existing homes in Canada's 25 major markets rose 6.9% and the new housing price index recently recorded its strongest annual increase since 1990. Also contributing to these strong results were advantageous mortgage rates, a high level of full-time employment, an increase in the number of immigrants and the low number of vacant multi-family dwellings.
The value of housing permits for the first eight months of the year reached a record $14.6 billion, up 8.0% from the same period in 2000. Cumulative figures for both single- and multi-family dwellings were higher than those from the same period last year.
Among the provinces so far this year, the strongest growth (in dollars) in residential construction intentions came from Ontario (+6.0%) while Nova Scotia showed the largest decline (-17.3%).
The value of building permits in the non-residential sector slid in August after a strong 15.3% advance in July. Declines in intentions for both the commercial and institutional components were partially offset by an increase in industrial permits.
The sector has seen mixed signals from both businesses and consumers. Corporate operating profits rose in the second quarter of 2001. However, retail trade fell for a second consecutive month in July, and in the second quarter of 2001, industries lowered their use of production capacity for a fourth consecutive quarter.
Industrial construction intentions increased 18.7% to $288 million in August after two monthly declines. Intentions in the utility and transportation category showed the most significant increase. The greatest growth (in dollar terms) for industrial intentions was in Alberta, where the value of industrial projects far more than doubled (+146.9% to $105 million), the highest value since October 1999.
The value of commercial permits fell 16.7% in August to $721 million, following a 25.5% jump in July. The value of permits in the warehouse category recorded the largest decrease. Ontario posted the largest decline (-22.7% to $289 million).
Institutional building intentions fell for the first time in six months (-18.3% to $420 million). The hospital and medical category showed the most important loss. Following a strong month, British Columbia recorded the most significant decrease due to a decline in the hospital and medical category in the Vancouver area.
Among the provinces, Alberta recorded the largest gain in the non-residential sector (+28.4% to $260 million). In contrast, Ontario recorded the largest decrease (-17.7% to $595 million) following robust gains in both June and July.
On a year-to-date basis, non-residential building intentions rose 15.2% to $12.2 billion, their best showing for the first eight months of any year since 1989. The largest advance was posted by the institutional component (+36.6% to $3.2 billion). Permits for commercial projects reached $6.6 billion, up 14.0%, while the industrial component showed a 1.6% decline to $2.5 billion.
Among the provinces, Quebec had the largest increase in the non-residential sector on a year-to-date basis (+40.7% to $2.8 billion) on the strength of the office buildings and trade and services categories in the Montreal area. The largest declines occurred in Nova Scotia and Manitoba.
|