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June 2008
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Analysis – June 2008
In June, the total value of building permits fell 5.3% from May to $6.3 billion, as construction intentions decreased in both the residential and non-residential sectors and in several provinces. In constant dollars, the decline was about the same magnitude at 5.5%.
In the residential sector, the value of building permits declined by 4.4% to $3.6 billion. The decrease was generated by lower values in multi-family permits in all provinces except Saskatchewan.
In the non-residential sector, the value of permits decreased by 6.6% to $2.8 billion, due to declines in commercial and industrial intentions.
Residential: Decline in multi-family intentions
Municipalities issued $1.3 billion worth of permits for multi-family housing in June, down 13.8%, a second consecutive monthly decrease. Most of these declines occurred in Ontario and Alberta.
At the same time, single-family permits edged up 1.8% to $2.3 billion. In the last four months, the value of single-family permits has remained between $2.2 billion and $2.3 billion.
Municipalities approved 17,309 new residential dwellings in June, down 9.3% and lower than the 2007 monthly average of 19,817 units.
Note to readers
Unless otherwise stated, this release presents seasonally adjusted data, which eases comparisons by removing the effects of seasonal variations.
The Building Permits Survey covers 2,400 municipalities representing 95% of the population. It provides an early indication of building activity. The communities representing the other 5% of the population are very small, and their levels of building activity have little impact on the total.
The value of planned construction activities shown in this release excludes engineering projects (e.g., waterworks, sewers or culverts) and land.
For the purpose of the Building Permits release, the census metropolitan area of Ottawa–Gatineau is divided into two areas: Ottawa–Gatineau (Quebec part) and Ottawa–Gatineau (Ontario part).
The number of multi-family units approved fell 19.0% in June, while the number of single-family units rose 3.7%.
Non-residential: Industrial and commercial intentions down
The value of permits for non-residential construction decreased in June, after two consecutive monthly increases. Declines in industrial and commercial intentions more than offset a gain in institutional permits.
The value of industrial permits fell 31.1% to $389 million following a 70.3% increase in May. This result was mainly due to decreases in permits for utility buildings.
The value of commercial permits decreased 7.7% to $1.6 billion. The decline was due to lower construction intentions for hotels and recreation buildings. In all, eight provinces posted declines in the overall commercial component.
In the institutional component, builders took out $765 million in permits, a 17.4% increase, and the third consecutive monthly increase. The gain was attributable to projects for nursing homes and schools.
Permits down in several provinces
The value of building permits decreased in six provinces.
The most significant decrease occurred in Ontario (-7.9% to $2.3 billion), due mainly to a 15.8% decline in intentions for non-residential buildings. The decline in the residential sector was a slight 1.7%.
British Columbia and New Brunswick also experienced declines in both the residential and non-residential sectors.
Alberta posted a 7.5% decline to $1.2 billion, due to a 19.6% decrease in the residential component.
In contrast, intentions rose 3.5% in Quebec, with gains in both the residential and non-residential sectors.
Metropolitan areas: London and Kingston show large declines
Of the 34 census metropolitan areas, 18 recorded reductions in the value of building permits in June.
The largest decrease occurred in London, with declines in the residential and non-residential sectors. Kingston followed closely with a decline mostly in the institutional component.
In contrast, the total value of permits in the census metropolitan area of Québec rose in June, due to increases in both the residential and non-residential sectors.
