The total value of residential construction investment for 2007 reached $88.7 billion, an increase of 8.5% compared with 2006. All components of residential construction (new housing, renovation and acquisition costs) and all provinces and territories saw gains.
In constant dollars, the increase in the overall residential construction investments in 2007 was 2.3%.
Among provinces, the biggest increases (in dollars) occurred in Alberta (+18.9% to $14.8 billion) and in Quebec (+8.0% to $19.1 billion). In percentage terms, Saskatchewan led the rest with an increase of 37.5%.
New housing investment represented the largest contribution in dollars, posting an increase of 8.5% to $44.2 billion. This increase stemmed mainly from investments in single-family homes, which rose 7.2% to $27.4 billion, and in apartment and condominium construction, which increased 9.7% to $10.3 billion.
The favourable job situation, growth in disposable income, attractive financing options and strength of the economy in Western Canada continued to support the demand for housing. The rise in the price of houses also played an important role in the increase in investments. The New Housing Price Index (house-only component) increased by 7.4% in 2007 compared with the previous year.
In 2007, construction spending in constant dollars fell 2.2% for new single-family housing and remained unchanged for apartments and condominiums.
In 2007, renovations increased 9.5% to $36.8 billion, which represented 41.5% of all residential construction investments. Acquisition costs represented 8.6% of total investments, or $7.7 billion, up 4.1% compared with 2006.
For the fourth quarter of 2007, construction investment increased 10.6% compared with the same quarter in 2006 to $23.1 billion. The increase came from new housing, renovations and acquisition costs.
Spending on new housing construction reached $11.9 billion, up 12.4% compared with the same quarter in 2006. This increase stemmed mainly from investments in new single-family housing construction, which came to $7.3 billion, an increase of 10.5% compared with the fourth quarter of 2006. Apartment construction rose 14.0% to $2.9 billion.
The increase in new housing investment was largely attributable to the increase in the average cost of new units. In constant dollars, spending on new single-family housing and apartment or condominium construction were up 4.2% and 4.4% respectively compared to the fourth quarter of 2006.
Renovation spending grew 8.3% compared with the fourth quarter of 2006 to $9.2 billion. Acquisition costs rose 10.3% to $2.0 billion.
Gains were achieved in all provinces and territories with the exception of Quebec and the Yukon. The biggest increase (in dollars) was in Alberta (+19.9% to $4.1 billion), largely due to the increased spending on new housing construction.
British Columbia came next with a 19.8% increase in investment to $3.9 billion. Ontario also had a strong 6.4% increase to $8.4 billion. Renovations in Quebec fell 4.7%, which contributed to a slight decrease in total investment for the province.
Note: Residential construction investment is divided into three main components. The first is new housing construction, which includes single dwellings, semi-detached dwellings, row housing and apartments, cottages, mobile homes and additional housing units created from non-residential buildings or other types of residential structures (conversions). The second component of residential construction investment (renovations) includes alterations and improvements in existing dwellings. The third component is acquisition costs, which refers to the value of services relating to the sale of new dwellings. These costs include sales tax, land development and service charges, as well as record-processing fees for mortgage insurance and the associated premiums.
Because ownership transfer costs are not included in the investment totals presented in this release and in CANSIM table 026-0013, the figures here do not match the figures published in the National economic accounts (CANSIM table 380-0010).
Available on CANSIM: table 026-0013.
Definitions, data sources and methods: survey number 5016.
For more information, or to enquire about the concepts, methods or data quality of this release, contact Nicole Charron ( 613-951-0087 ; email@example.com), Investment and Capital Stock Division.
|Residential construction investment|
|Province/territory||Fourth quarter 2006||Fourth quarter 2007||Fourth quarter 2006 to fourth quarter 2007||2006||2007||2006 to 2007|
|Newfoundland and Labrador|
|Prince Edward Island|