In June, the total value of building permits fell 5.3% from May

In June, the total value of building permits fell 5.3% from May to $6.3 billion, as construction intentions decreased in both the residential and non-residential sectors and in several provinces. In constant dollars, the decline was about the same magnitude at 5.5%.

In the residential sector, the value of building permits declined by 4.4% to $3.6 billion. The decrease was generated by lower values in multi-family permits in all provinces except Saskatchewan.

In the non-residential sector, the value of permits decreased by 6.6% to $2.8 billion, due to declines in commercial and industrial intentions.

Residential: Decline in multi-family intentions

Municipalities issued $1.3 billion worth of permits for multi-family housing in June, down 13.8%, a second consecutive monthly decrease. Most of these declines occurred in Ontario and Alberta.

At the same time, single-family permits edged up 1.8% to $2.3 billion. In the last four months, the value of single-family permits has remained between $2.2 billion and $2.3 billion.

Municipalities approved 17,309 new residential dwellings in June, down 9.3% and lower than the 2007 monthly average of 19,817 units.

The number of multi-family units approved fell 19.0% in June, while the number of single-family units rose 3.7%.

Non-residential: Industrial and commercial intentions down

The value of permits for non-residential construction decreased in June, after two consecutive monthly increases. Declines in industrial and commercial intentions more than offset a gain in institutional permits.

The value of industrial permits fell 31.1% to $389 million following a 70.3% increase in May. This result was mainly due to decreases in permits for utility buildings.

The value of commercial permits decreased 7.7% to $1.6 billion. The decline was due to lower construction intentions for hotels and recreation buildings. In all, eight provinces posted declines in the overall commercial component.

In the institutional component, builders took out $765 million in permits, a 17.4% increase, and the third consecutive monthly increase. The gain was attributable to projects for nursing homes and schools.

Permits down in several provinces

The value of building permits decreased in six provinces.

The most significant decrease occurred in Ontario (-7.9% to $2.3 billion), due mainly to a 15.8% decline in intentions for non-residential buildings. The decline in the residential sector was a slight 1.7%.

British Columbia and New Brunswick also experienced declines in both the residential and non-residential sectors.

Alberta posted a 7.5% decline to $1.2 billion, due to a 19.6% decrease in the residential component.

In contrast, intentions rose 3.5% in Quebec, with gains in both the residential and non-residential sectors.

Metropolitan areas: London and Kingston show large declines

Of the 34 census metropolitan areas, 18 recorded reductions in the value of building permits in June.

The largest decrease occurred in London, with declines in the residential and non-residential sectors. Kingston followed closely with a decline mostly in the institutional component.

In contrast, the total value of permits in the census metropolitan area of Québec rose in June, due to increases in both the 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 June 2008 issue of Building Permits (64-001-XWE, free) will be available soon.

The July building permit estimate will be released on September 8.

To order data, contact Jasmine Gaudreault (613-951-6321; toll-free 1-800-579-8533; bdp_information@statcan.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.