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Building permits (September 2010)

Building permits (September 2010)

The value of building permits increased 15.3% to $6.6 billion in September, following two months of declines. This gain was a result of increases in both the residential and non-residential sectors.

In the residential sector, the value of permits was up for a second consecutive month. Residential construction intentions increased 8.3% to $3.9 billion. Ontario and British Columbia accounted for most of the growth at the national level.

In the non-residential sector, municipalities issued permits worth $2.7 billion, up 26.7%, following a 24.2% decline in August. September's increase came mostly from higher construction intentions for commercial buildings in Ontario, Quebec and British Columbia.

The total value of building permits increased in five provinces, led by Ontario, British Columbia and Quebec.

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

The value of building permits for single-family dwellings increased by 9.5% in September to $2.2 billion, following five months of declines. This increase was due to higher construction intentions in seven provinces, led by Ontario.

Intentions for multi-family dwellings rose 6.7% to $1.6 billion, the second monthly increase in a row. British Columbia recorded the largest increase among the six provinces that reported a gain. Construction intentions for multi-family dwellings declined in Quebec, Alberta, Manitoba and Newfoundland and Labrador.

Nationally, municipalities approved 17,510 new dwellings in September, up 4.0% from August. The increase came mostly from single-family dwellings, which rose 9.2% to 7,178 units. The number of multiple-family dwellings edged up 0.6% to 10,332 units.

Non-residential sector: Large gains in the commercial and institutional components

In the commercial component, municipalities issued permits worth $1.5 billion in September, a 37.8% increase following two monthly declines. The increase was due mainly to construction intentions for office buildings in Ontario, Quebec and British Columbia.

In the institutional component, the value of permits increased 23.4% to $858 million. The gain was largely attributable to higher construction intentions for medical facilities and religious buildings in Ontario, which was enough to offset decreases in seven provinces.

In the industrial component, the value of permits edged up 0.3% to $375 million. An increase in the value of permits for manufacturing plants in five provinces offset declines in intentions for utilities and transportation buildings in eight provinces.

Strong gains in Ontario, British Columbia and Quebec

The value of building permits increased in five provinces: Ontario, British Columbia, Quebec, Prince Edward Island and Nova Scotia.

In Ontario, the gain was the result of increases in the commercial and institutional components, as well as in the residential sector. In British Columbia, the increase came from the non-residential sector and higher intentions for multiple-family dwellings. In Quebec, the increase was due mostly to gains in the commercial component of the non-residential sector. Various institutional and commercial buildings increased the value of the non-residential sector in Prince Edward Island.

New Brunswick and Manitoba posted the largest decreases. In New Brunswick, construction intentions were down in the institutional component. In Manitoba, the largest declines occured in permits for commercial buidings and multi-family dwellings.

Permits up in most metropolitan areas

The total value of permits increased in 21 of the 34 census metropolitan areas. The strongest gains occurred in Toronto, Vancouver, Gatineau and Guelph.

In Toronto, the increase came mostly from single-family dwellings, while in Vancouver it was due mostly to multiple-family dwellings. In both Gatineau and Guelph, the commercial component led the increase.

The largest declines occurred in Edmonton and Montréal. The decrease in Edmonton came from both the residential and non-residential sectors. In Montréal, it was the result of reduced intentions for multi-family dwellings and institutional buildings.

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Québec Landlords Association (1)

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