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Two hospital projects drive Q2 permit increase: StatCan

The total monthly value of building permits in Canada increased 6.1% in June to $11.6 billion, with a notable 67.2% monthly increase (+$619.3 million) in the institutional component.

On a constant dollar basis (2012=100), the total value of building permits went up 7.0% to $6.8 billion.

The total monthly value of non-residential permits increased 20.4% to $4.7 billion in June. Declines in the commercial construction intentions (-7.7% or -$176.0 million) were more than offset by gains in the industrial (+51.0% or +$349.9 million) and institutional (+67.2% or +$619.3 million) components.

The two highest-valued permits in June were issued for the construction of new hospitals in Vaudreuil-Dorion, Quebec and Dawson Creek, British Columbia, which together totalled 58.6% of the total value of institutional construction intentions.

The total value of building permits in the second quarter declined 1.0% from the first quarter to $32.2 billion, as the non-residential sector fell 9.6% to $12.0 billion, following the first quarter’s record high for the sector.

Despite the overall decline, the residential sector broke a three-quarter slump, increasing 4.9% in the second quarter to $20.3 billion. Year over year, the value of construction intentions in the residential sector remained below the level seen in the second quarter of 2022 ($24.2 billion).

Similarly, 64,400 dwelling units were created in permits issued in the second quarter of 2023, 2.7% more than in the first quarter (62,700 units), with British Columbia leading the quarterly gains (+24.4% or +2,700 new units). Nationally, new dwelling units created in the second quarter were 14.7% below the number of dwellings created in the second quarter of 2022 (75,400 units).