Builders intend to build fewer multifamily homes

by Steve Randall10 Jan 2020

The value of building permits issued by Canadian municipalities dropped 2.4% in November to $8.1 billion, with residential permits down significantly.

Statistics Canada’s latest report shows that residential permits fell overall as intentions for multifamily units dropped 11.3% to $2.5 billion. Fewer permits were issued across all provinces except Prince Edward Island.

For single-family homes, the value of permits increased 5.6% to $2.3 billion, led by Ontario (+$78 million) and British Columbia (+$41 million).

Non-res shift

Non-residential permits were flat in November with a 0.1% decline. However, looking at the individual components, there was a shift in November compared to the previous month.

The value of industrial permits rose 24.5% to $753 million, mostly due to a high value permit for an organic waste management facility in Québec City.

There was also a gain for institutional permits which increased 14.5% to $894 million, largely due to gains in Quebec (+$209 million) resulting from building intentions for healthcare and educational facilities.

A decline in commercial permits (-13.5% to $1.7 billion) offset these gains.

Nunavut jump

The stats also show a significant jump in permits issued in Nunavut due to a mixed-use residential and commercial project in Iqaluit

This took the value of permits issued from $500,000 in November to $16 million in December.

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