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StatsCan building permits report: August 2014

Oct. 7, 2014 – The total value of building permits issued by Canadian municipalities
fell 27.3% to $6.7 billion in August, following three months of
double-digit increases.

Oct. 7, 2014 – The total value of building permits issued by Canadian municipalities
fell 27.3% to $6.7 billion in August, following three months of
double-digit increases.
The August decline was mainly the result of lower construction
intentions for non-residential buildings in Quebec and residential
buildings in Ontario.

In the non-residential sector, the total value of building permits
decreased 40.6% to $2.5 billion in August, following four consecutive
monthly gains. Lower construction intentions were posted in seven
provinces, with Quebec contributing most to the national decline.

After five consecutive monthly advances, the total value of permits
in the residential sector declined 15.9% in August to $4.2 billion. The
largest decreases were registered in Ontario, followed by British
Columbia and the Atlantic provinces. Gains were recorded in four
provinces, led by Alberta.

Non-residential sector: Decreases in construction intentions in all three components

Institutional building construction intentions fell 76.0% to
$446 million in August, after increasing 29.6% in July and 149.3% in
June. The value of institutional building permits was down in every
province except Prince Edward Island. Quebec accounted for much of the
national decline, the result of lower construction intentions for
medical facilities. Manitoba's decrease was also a result of lower
construction intentions for medical facilities. In Ontario, the decline
was mostly attributable to a drop in intentions for educational
institutions.

In the commercial component, the value of permits fell 12.1% to
$1.6 billion in August, following a 1.2% increase the previous month.
The decline originated from lower construction intentions in warehouses
and office buildings at the national level. Decreases were posted in
five provinces, with Ontario and British Columbia registering the
largest declines. Newfoundland and Labrador posted the biggest gain.

In the industrial component, the value of permits declined 15.2% to
$454 million in August, marking the second consecutive monthly decline.
Decreases were posted in five provinces, with Quebec and Alberta
recording the largest declines. Lower construction intentions for
manufacturing plants and utility buildings were mainly responsible for
the decline in Quebec, while in Alberta, the decrease came primarily
from utility buildings.

Residential sector: Large decrease in construction intentions for multi-family dwellings

Building permits for multi-family dwellings decreased 28.6% in August
to $1.8 billion, following a 42.8% increase in July. Decreases were
reported in six provinces, led by Ontario, with British Columbia a
distant second. Alberta and Saskatchewan registered the largest
increases.

Construction intentions for single-family dwellings declined 2.4% to
$2.3 billion in August, a second consecutive monthly decrease. Lower
construction intentions were posted in seven provinces, with Ontario and
Alberta accounting for much of the decline. In contrast, the largest
gains occurred in Quebec, followed by British Columbia.

Nationally, municipalities approved the construction of 16,520 new
dwellings in August, down 18.9% from July. The decline was mostly
attributable to lower construction intentions for multi-family
dwellings, which fell 26.3% to 10,320 dwellings. The number of
single-family dwellings was also down, falling 2.7% to 6,200 units.

Provinces: Ontario and Quebec post the largest decreases

The total value of permits was down in six provinces in August, with
the largest declines registered in Ontario and Quebec and, to a lesser
extent, British Columbia.

Ontario's decrease was mainly the result of lower construction
intentions for multi-family dwellings as well as institutional
buildings. In Quebec, the decline was attributable to institutional
buildings, while the decline in British Columbia came mainly from
multi-family dwellings as well as commercial and institutional
buildings.

The largest increase occurred in Alberta, where a rise in the value
of multi-family dwellings more than offset decreases in single-family
dwellings and non-residential buildings. In Newfoundland and Labrador,
higher construction intentions for commercial buildings accounted for
the advance.

Lower construction intentions in most census metropolitan areas

In August, the total value of permits was down in 22 of the 34 census metropolitan areas.

The largest decreases were in Montréal and Toronto, followed by
Vancouver. In Montréal, the decrease was attributable to institutional
buildings, whereas lower intentions for multi-family dwellings drove the
decline in Toronto. The drop in Vancouver originated from lower
construction intentions for multi-family dwellings and non-residential
buildings.

Calgary saw the largest increase in August, followed by Oshawa and
St. John's. In Calgary, multi-family dwellings were behind the advance.
Higher construction intentions for residential and commercial buildings
were responsible for the advance in Oshawa, while commercial buildings
explained the gain in St. John's.

For more information

http://www.statcan.gc.ca