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Building permits, August 2016

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Released: 2016-10-06

Building permits — Canada

$7.3 billion

August 2016

10.4% 

(monthly change)

Building permits — N.L.

$29.4 million

August 2016

-23.1% 

(monthly change)

Building permits — P.E.I.

$22.3 million

August 2016

2.0% 

(monthly change)

Building permits — N.S.

$109.8 million

August 2016

25.7% 

(monthly change)

Building permits — N.B.

$93.3 million

August 2016

39.9% 

(monthly change)

Building permits — Que.

$1,354.7 million

August 2016

20.6% 

(monthly change)

Building permits — Ont.

$3,107.4 million

August 2016

7.2% 

(monthly change)

Building permits — Man.

$261.5 million

August 2016

10.5% 

(monthly change)

Building permits — Sask.

$150.0 million

August 2016

-7.7% 

(monthly change)

Building permits — Alta.

$1,007.5 million

August 2016

1.3% 

(monthly change)

Building permits — B.C.

$1,157.5 million

August 2016

15.9% 

(monthly change)

Building permits — Y.T.

$25.3 million

August 2016

393.5% 

(monthly change)

Building permits — N.W.T.

$9.9 million

August 2016

72.7% 

(monthly change)

Building permits — Nvt.

$2.5 million

August 2016

-33.2% 

(monthly change)

Municipalities issued $7.3 billion worth of building permits in August, up 10.4% from July. This marked the second consecutive monthly increase. The gain in August was mainly attributable to higher construction intentions in Quebec, Ontario and British Columbia.

Chart 1  Chart 1: Total value of permits
Total value of permits

The value of residential building permits was up 9.6% to $4.5 billion in August, following four consecutive monthly declines. Both residential components—multi-family and single-family dwellings—recorded gains. Six provinces posted increases, led by Ontario and British Columbia.

In the non-residential sector, municipalities issued $2.9 billion worth of permits in August, up 11.6% from July. The increase was mainly attributable to higher construction intentions for commercial buildings and, to a lesser extent, industrial buildings. Gains were reported in five provinces, led by Quebec, followed distantly by Manitoba.

Residential sector: Multi-family dwellings record the largest increase

The value of permits for multi-family dwellings rose 14.7% to $1.9 billion in August. This was the third advance in four months. Higher construction intentions were reported in four provinces, led by British Columbia and Ontario. Alberta posted the largest decline.

In the single-family dwelling component, municipalities issued $2.5 billion worth of building permits in August, up 6.0% from July. The increase stemmed mainly from higher construction intentions in Ontario and Alberta.

Municipalities approved the construction of 16,544 new dwelling in August, up 5.9% from the previous month. The rise was mainly attributable to multi-family dwellings, up 7.9% to 10,557 units. Single-family dwellings increased 2.5% to 5,987 units.

Chart 2  Chart 2: Residential and non-residential sectors
Residential and non-residential sectors

Non-residential sector: Higher commercial and industrial construction intentions

In the commercial component, the value of permits was up 18.3% to $1.6 billion in August, a third consecutive monthly increase. Higher construction intentions for retail complexes and recreational buildings contributed to the gain. Seven provinces recorded advances, led by Ontario, Quebec and Alberta.

The value of industrial permits rose 14.8% compared with July to $495 million in August. The increase stemmed from higher construction intentions for utilities buildings and, to a lesser extent, maintenance facilities. Five provinces reported gains, led by Manitoba and Ontario.

Institutional construction intentions fell 1.1% to $800 million in August. Lower construction intentions for medical facilities were mainly responsible for the decrease. Eight provinces reported declines, led by Ontario and Alberta. Conversely, Quebec recorded the largest advance, which was mainly attributable to educational institutions.

Provinces: Quebec, Ontario and British Columbia post the largest increases

The total value of building permits was up in eight provinces in August, led by Quebec, Ontario and British Columbia.

In Quebec, the value of building permits rose 20.6% to $1.4 billion in August, the third increase in four months. Gains were posted in every non-residential component, led by institutional structures. However, the value of residential building permits fell 3.1% in the province, with both residential components recording decreases.

The value of permits in Ontario increased 7.2% to $3.1 billion in August, a second consecutive monthly gain. All components registered advances, except institutional buildings, which had posted a notable increase in July. The overall rise was mainly attributable to higher construction intentions for multi-family dwellings, commercial buildings and single-family homes.

Following two monthly declines, the value of permits in British Columbia was up 15.9% to $1.2 billion in August. Higher construction intentions for multi-family dwellings more than offset decreases reported in every other component.

Conversely, Saskatchewan and Newfoundland and Labrador posted declines. In Saskatchewan, the value of permits fell 7.7% to $150 million in August. The decrease stemmed mainly from multi-family dwellings, which were down following five consecutive monthly gains. Newfoundland and Labrador reported a 23.1% drop in the value of permits, a third consecutive monthly decline.

Census metropolitan areas: Montréal records the strongest advance

In August, the total value of building permits was up in 22 of the 34 census metropolitan areas. Montréal reported the largest increase, followed by Toronto.

The value of building permits in Montréal rose 65.6% to $838 million in August, following three consecutive monthly declines. Higher construction intentions were reported in every component, led by institutional and commercial buildings.

In Toronto, the value of permits was up 9.7% to $1.7 billion in August, a third consecutive monthly increase. Higher construction intentions for commercial buildings, multi-family dwellings and single-family homes led the advance.

In contrast, the value of permits in Ottawa dropped 25.7% to $257 million in August, following a 60.9% increase the previous month. Decreases were widespread among all components, except industrial buildings, which recorded a 36.3% gain.




  Note to readers

Unless otherwise stated, this release presents seasonally adjusted data, which facilitate comparisons by removing the effects of seasonal variations. For information on seasonal adjustment, see Seasonally adjusted data – Frequently asked questions.

The Building Permits Survey covers over 2,400 municipalities, representing 95% of the Canadian population. The communities representing the other 5% of the population are very small and their levels of building activity have little impact on the total for the entire population.

Building permits data are used as a leading indicator of activity in the construction industry.

The value of planned construction activities presented in this release excludes engineering projects (for example, waterworks, sewers or culverts) and land.

For the purpose of this release, the census metropolitan area of Ottawa–Gatineau (Ontario/Quebec) is divided into two areas: Gatineau part and Ottawa part.

Unless otherwise specified, the highlights refer to seasonally adjusted current dollars and are ranked in terms of dollar change rather than percentage change.

Revision

Data for the current reference month are subject to revision based on late responses. Data for the previous month have been revised.

Trend-cycle estimates have been added to the charts as a complement to the seasonally adjusted series. Both the seasonally adjusted and the trend-cycle estimates are subject to revision as additional observations become available. These revisions could be large and even lead to a reversal of movement, especially at the end of the series. The higher variability associated with the trend-cycle estimates is indicated with a dotted line on the chart.

For information on trend-cycle data, see the StatCan Blog and Trend-cycle estimates – Frequently asked questions.

Next release

Data for September on building permits will be released on November 8.

Products

The August 2016 issue of Building Permits (Catalogue number64-001-X) will soon be available.

Contact information

For more information, contact us (toll-free 1-800-263-1136; 514-283-8300; STATCAN.infostats-infostats.STATCAN@canada.ca).

To enquire about the concepts, methods or data quality of this release, contact Kaitlynn Carson (613-883-2396; kaitlynn.carson@canada.ca), Investment, Science and Technology Division.

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