Building permits

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The value of building permits edged down 0.5% to $5.7 billion in February and was 56.7% higher than in February 2009, when it was at its lowest level during the economic slowdown.

In February, increases in permits for commercial buildings and single-family dwellings failed to offset a significant decline in multiple-dwelling construction intentions.

Residential construction intentions fell 7.5% to $3.7 billion. A 52.5% drop in the value of multiple dwellings in Ontario was largely responsible for the decrease at the national level.

In the non-residential sector, municipalities issued permits worth $2.0 billion, a 16.0% advance following three consecutive months of declines. Permits for commercial buildings posted the largest gain in February.

At the provincial level, the value of building permits was up in six provinces, with Quebec and Alberta leading the way. Ontario, Nova Scotia, British Columbia and Manitoba posted declines in February.

Residential sector: Decline in multiple-dwelling intentions

The value of building permits for multi-family units declined 28.3% to $962 million in February. Ontario, Quebec and Nova Scotia posted the largest declines, while Alberta and New Brunswick were the only provinces to record advances in February.

The value of building permits for single-family dwellings rose 3.0% to $2.7 billion, its second straight monthly gain. The value of single-family permits has been on an upward trend over the past year and reached its highest point ever in February. Every province except British Columbia, Nova Scotia and Manitoba contributed to the increase in single-family construction intentions.

Municipalities approved the construction of 16,107 new dwellings in February, down 14.2%. The decrease was largely attributable to multi-family dwellings, which fell 27.1% to 6,962 units. While the value of single-family permits was up, the number of units approved declined 1.0% to 9,145.

Non-residential sector: Significant increase in the commercial component

The value of commercial building permits totalled $1.3 billion, up 27.0% from January. The increase was mainly due to construction intentions for hotels and office buildings in Ontario and Quebec. Alberta recorded an increase in permits for recreational buildings and retail stores.

In the industrial component, the value of building permits advanced 2.1% to $264 million. The increase was mainly a result of higher construction intentions in Alberta, Nova Scotia and British Columbia.

The value of institutional building permits edged down 0.4% to $440 million, after falling 14.9% in January. In February, Ontario and Alberta saw a decline in building projects for educational institutions, which were not offset by the increase in Quebec.

Ontario and Quebec at opposite extremes

The value of building permits was up in six provinces.

Quebec posted the largest gain, led by the non-residential sector. Alberta followed with increases in every residential-sector component and an advance in the non-residential sector.

In February, four provinces posted declines as a result of a drop in the value of residential-sector permits, despite growth in the non-residential sector. Ontario posted the steepest decline in February, primarily because of lower permits for multi-family units.

Metropolitan areas: Permit values down in more than half of the census metropolitan areas

The total value of permits was down in 19 of the 34 census metropolitan areas.

The largest declines were in Toronto and Montréal and were due to decreases in the residential sector. Kitchener followed with a decline due to the non-residential sector and multi-family units.

In contrast, the biggest gains were in Edmonton and Windsor, and were attributable to increases in both residential and non-residential sectors.

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

Definitions, data sources and methods: survey number 2802.

The February 2010 issue of Building Permits (64-001-X, free) will be available soon.

The March building permit data will be released on May 6.

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.