Building permits

Contractors took out $5.9 billion in building permits in November, down 4.6% from October, but 23.1% higher than November 2008 and 62.8% above February 2009, when the lowest value during the economic downturn was recorded. However, November's value remained below values recorded in 2007 and early 2008.

The decline in November was due to decreases in the non-residential sector, which outweighed increases in the residential sector.

In the residential sector, the value of permits continued its upward trend. Construction intentions, which have started to approach their pre-downturn levels, rose 9.1% to $3.8 billion in November, a fourth consecutive monthly increase. Ontario and British Columbia accounted for most of the gains at the national level.

In the non-residential sector, municipalities issued $2.1 billion worth of permits in November, down 21.9% from October. This decrease occurred mainly as a result of declines in Alberta, Saskatchewan and Quebec.

The total value of building intentions fell in four provinces: Alberta, Saskatchewan, Quebec and Prince Edward Island.

Non-residential sector: Decreases in industrial and institutional components

Building intentions declined in the industrial and institutional components of the non-residential sector in November.

In the industrial component, intentions fell 57.6% to $296 million in November, following strong gains in October. Overall, seven provinces reported lower construction intentions, in particular Alberta, Quebec and Ontario.

In the institutional component, municipalities issued permits worth $675 million, down 26.4% following a 53.1% gain in October. Alberta and Saskatchewan posted the largest declines. This was mainly as a result of decreases in building permits for educational buildings projects.

The value of commercial building permits increased 3.9% to $1.2 billion. The advance was due primarily to construction intentions for recreational buildings and office buildings in Alberta and British Columbia.

Residential sector: Higher intentions for single- and multi-family permits

Municipalities issued $1.3 billion worth of building permits for multi-family dwellings in November, 23.3% more than in October. This was fuelled by higher construction intentions in seven provinces, in particular, Ontario and British Columbia.

The value of building permits for single-family dwellings increased for a ninth consecutive month, rising 2.9% in November to $2.5 billion. Ontario, Newfoundland and Labrador, Nova Scotia and British Columbia posted the largest increases. Quebec registered a significant decline in single-family construction intentions.

Nationally, municipalities approved the construction of 17,589 new dwelling units in November, up 9.7%.

The increase was largely attributable to multi-family dwellings, which increased 16.7% to 8,850 units in November. The number of single-family dwellings approved rose 3.4% to 8,739 units.

Largest declines in Alberta, Saskatchewan and Quebec

The value of building permits decreased in four provinces, offsetting the increases in the other six provinces.

The largest declines occurred in Alberta, Saskatchewan and Quebec. These provinces recorded declines mainly in the value of permits in the non-residential sector, which had increased in October.

Ontario posted the largest advance in November, reflecting gains in single- and multi-family dwellings as well as in institutional permits.

Ontario was followed by British Columbia, which registered gains in single and multiple dwellings and in the commercial component of the non-residential sector.

Value of permits down in half of the metropolitan areas

The total value of permits declined in half of the 34 census metropolitan areas.

The largest declines were in Calgary and Toronto. In both municipalities, the increase in the value of residential permits was insufficient to offset declines in all three components of the non-residential sector.

In contrast, Vancouver and Hamilton registered increases. In Vancouver, the gain originated from multiple-family dwellings as well as from the commercial and institutional components of the non-residential sector.

In Hamilton, the increase came from building permits for the residential sector and for commercial buildings.

Available on CANSIM: tables 026-0001 to 026-0008 and 026-0010.

Definitions, data sources and methods: survey number 2802.

The November 2009 issue of Building Permits (64-001-X, free) will soon be available.

Building permits data for December will be released on February 4.

To order data, contact Jasmine Gaudreault (toll-free 1-800-579-8533; 613-951-6321; bdp_information@statcan.gc.ca). For more information, or to enquire about the concepts, methods or data quality of this release, contact Nicole Charron (613-951-0087), Investment and Capital Stock Division.