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Building permits (July 2010)

Building permits (July 2010)

Municipalities issued building permits worth $6.4 billion in July, down 3.3% from June but 33.0% higher than the level in July 2009. The decrease in July was a result of declines in both the residential and non-residential sectors.

In the non-residential sector, municipalities issued building permits worth $2.9 billion in July, down 4.3% from June, as a result of lower construction intentions for industrial and commercial buildings.

The value of residential permits declined for a fourth consecutive month, down 2.4% to $3.5 billion in July. However, the value of residential permits was 28.6% higher than in July 2009. The value of both single- and multi-family permits declined in six provinces in July.

The total value of building intentions increased in four provinces: Ontario, Saskatchewan, British Columbia and Manitoba.

Residential sector: Intentions down for single- and multiple-family permits

The value of building permits for single-family dwellings declined for a fourth consecutive month, down 0.9% to $2.1 billion in July. The decrease was a result of lower construction intentions in eight provinces, despite a 10.0% increase in Ontario.

Intentions for multi-family dwellings fell 4.6% to $1.4 billion, following two monthly increases. In July, six provinces posted declines, led by British Columbia and Quebec. However, Ontario and Alberta registered higher construction intentions in the multi-family component.

Nationally, municipalities approved 17,099 new dwellings in July, down 4.6% from June. The decline came from both single-family dwellings, which fell 0.8% to 7,452 units, and multi-family dwellings, which declined 7.3% to 9,647.

Non-residential sector: Declines in the industrial and commercial components

In the industrial component, the value of permits fell 28.2% to $406 million in July, a second consecutive monthly decrease. Lower intentions came mostly from Newfoundland and Labrador, which had posted a large gain in June. Quebec and Alberta also reported declines in July, as a result of lower construction intentions spread across a wide variety of buildings.

In the commercial component, municipalities issued permits worth $1.3 billion in July, down 9.2% from June. July's decrease was mainly a result of lower construction intentions spread across a wide variety of commercial buildings in Ontario and Alberta.

The value of permits in the institutional component increased for a second consecutive month, up 16.8% to $1.1 billion in July. The increase was largely a result of higher construction intentions for medical facilities in Ontario and British Columbia. The gain in Quebec came mainly from educational institutions.

Largest declines in Alberta and Newfoundland and Labrador

The value of building permits fell in six provinces.

The largest decreases occurred in Alberta and Newfoundland and Labrador. In both provinces, the decline was mainly the result of lower intentions in the industrial and commercial components. In Quebec, the decrease came from the residential sector and from the industrial component of the non-residential sector.

Ontario and Saskatchewan posted the largest gains. In Ontario, all components except the commercial increased in July. In Saskatchewan, the increase came from the non-residential sector.

Value of permits down in half of the census metropolitan areas

The total value of permits fell in 17 of the 34 census metropolitan areas.

The largest declines were in Kitchener–Cambridge–Waterloo, Edmonton and Ottawa. In Kitchener–Cambridge–Waterloo, the decrease came from all components except single dwellings.

Edmonton experienced a decrease as a result of the commercial and industrial components. In Ottawa, the decline was attributable to all components except permits for institutional buildings.

The largest gains occurred in St. Catharines–Niagara, Hamilton and Toronto. In St. Catharines–Niagara, the increase came from the institutional component, including a new medical facility. Toronto posted gains in the residential sector, while Hamilton's increases were in both sectors.

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Québec Landlords Association (1)

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