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The value of building permits increased 1.6% to $5.1 billion in September

The value of building permits increased 1.6% to $5.1 billion in September

This second consecutive monthly increase came from higher intentions in the residential sector, which more than offset a decline in the non-residential sector.

The value of residential permits increased 9.4% to $3.2 billion, a level not seen since September 2008. The increase was mainly a result of gains in the value of multi-family dwellings, especially in British Columbia and Ontario.

In the non-residential sector, the value of permits fell 9.1% to $1.9 billion in September. The decline largely reflects drops in the institutional and commercial components in British Columbia.

Overall, the value of building permits fell in three provinces (British Columbia, Manitoba, Newfoundland and Labrador) and two territories (Nunavut and Yukon).

Residential sector : Higher intentions for multi-family permits

Municipalities took out $1.1 billion worth of building permits for multi-family dwellings, up 32.1% from August. This increase was fuelled by higher construction intentions in eight provinces and two territories, led by British Columbia and Ontario.

The value of single-family permits edged up 0.2% to $2.1 billion. Intentions in this component increased in six provinces, which was enough to offset a 5.4% drop in Ontario.

Municipalities approved the construction of 15,250 new dwellings in September, up 13.3%. The increase was largely attributable to multi-family dwellings, which rose 27.8% to 7,835 units.

The number of single-family dwellings approved rose 1.2% to 7,415 units.

Non-residential sector : Decreases in the institutional and commercial components

In the institutional component, the value of permits declined 18.5% to $597 million in September, a fourth consecutive monthly decrease. British Columbia and Newfoundland and Labrador were largely responsible for the monthly decline. On the other hand, six provinces posted gains in institutional permits, as a result of higher construction intentions for home care facilities.

In the commercial component, intentions fell 11.0% to $950 million. This decrease came largely from lower construction intentions of laboratories and recreational buildings in British Columbia and office buildings in Ontario.

The value of industrial permits rose for a second consecutive month, up 20.0% to $363 million in September. The increase was due mostly to higher intentions for utility buildings in Quebec and Ontario.

Provinces : Increases in Quebec and Alberta

The value of building permits increased in seven provinces in September.

The most significant increases occurred in Quebec (+10.7% to $1.2 billion), Alberta (+13.8% to $906 million) and Ontario (+5.7% to $1.8 billion). The increase for all three provinces was the result of higher construction intentions in both the residential and non-residential sectors.

British Columbia (-27.3%) posted the largest decline, following a 48.1% increase in August. The decline was a result of decreases in all three components of the non-residential sector.

Note to readers

Unless otherwise stated, this release presents seasonally adjusted data, which eases comparisons by removing the effects of seasonal variations.

The Building Permits Survey covers 2,400 municipalities representing 95% of the population. It provides an early indication of building activity. The communities representing the other 5% of the population are very small, and their levels of building activity have little impact on the total.

The value of planned construction activities shown in this release excludes engineering projects (e.g., 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.

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Québec Landlords Association (1)

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