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The value of building permits totalled $6.6 billion in June

The value of building permits totalled $6.6 billion in June

The value of building permits totalled $6.6 billion in June, up 6.5% from May and a 24.9% increase from June 2009. The gain in June was due to the non-residential sector, which more than offset the decline in the residential sector.

In the non-residential sector, the value of permits increased 23.5% from May to $3.0 billion in June. This increase was largely attributable to higher commercial and institutional construction intentions in Ontario and higher commercial construction intentions in Alberta.

In the residential sector, the value of permits fell 4.5% from May to $3.6 billion in June, as a result of a drop in single-family housing permits. This was the third consecutive monthly decrease.

The total value of permits was up in six provinces, led by Alberta, Newfoundland and Labrador and British Columbia. Saskatchewan posted the largest decrease.

Non-residential sector: Increases in both institutional and commercial components

In the commercial component, municipalities issued $1.5 billion worth of permits in June, up 39.0% from May. The increase was primarily due to higher construction intentions for hotels, restaurants and conference centres in Ontario and for recreational facilities in Alberta.

The institutional component increased 41.7% from May to $966 million in June. The increase was largely due to higher construction intentions for educational institutions in Ontario.

After five consecutive monthly increases, the value of industrial building permits fell 18.0% from May to $566 million in June. Ontario had the largest decrease, while Newfoundland and Labrador posted the biggest gain.

Residential sector: Lower intentions for single-family dwellings

The value of building permits for single-family units declined for the third consecutive month, falling 8.3% from May to $2.2 billion in June. The decline in June was a result of decreases in every province except Newfoundland and Labrador.

Municipalities issued $1.4 billion worth of building permits for multi-family dwellings in June, 2.0% more than in May and a second consecutive monthly increase. British Columbia was by far the province with the largest gain in the value of multi-family permits, offsetting declines in six provinces.

Municipalities approved the construction of 17,729 new dwellings in June, up 2.0% from May. This was due to a 12.1% increase in the number of multi-family dwellings to 10,216, despite a 9.2% drop in the number of single-family dwellings to 7,513.

Increases in six provinces

In June, the value of building permits was up in six provinces.

Alberta, Newfoundland and Labrador and British Columbia posted the largest advances. The increase in Alberta was attributable to all components in the non-residential sector. In Newfoundland and Labrador, the value of permits tripled relative to May as a result of increases in every component except institutional buildings. In British Columbia, the gain was due to the commercial and industrial components, and permits for multi-family dwellings.

Saskatchewan had the largest drop with decreases in every component. Ontario posted a small decline as a result of increases in the institutional and commercial components, which did not entirely offset decreases in the other components.

Increases in the census metropolitan areas

The total value of permits rose in 15 of the 34 census metropolitan areas.

In Kitchener, the value of permits doubled as a result of gains in all non-residential components and in multi-family dwellings. The value of permits was up in Edmonton and Ottawa because of increases in the three components of the non-residential sector. The value of permits in St. John's was pushed upward by all components except institutional or government buildings.

In contrast, Toronto and St. Catharines–Niagara posted the largest declines. In Toronto, the decrease was attributable to the residential sector and permits for industrial buildings. The decrease in St. Catharines–Niagara stemmed from every component in the non-residential sector.

About the author

Québec Landlords Association (1)

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