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Total value of building permits falls in December

Feb. 13, 2014 – The total value of building permits issued by Canadian municipalities
declined 4.1% to $6.5 billion in December, following a 6.6% decrease in
November.

Feb. 13, 2014 – The total value of building permits issued by Canadian municipalities
declined 4.1% to $6.5 billion in December, following a 6.6% decrease in
November.

Lower construction intentions for commercial buildings and
multi-family dwellings in Ontario and British Columbia were responsible
for much of the decrease at the national level in December.

The total value of building permits for 2013 edged down 0.1% from 2012 to $80.8 billion.

The total value of permits in the residential sector fell for a
second consecutive month, down 9.3% to $3.7 billion in December and the
lowest level since March 2013. Lower construction intentions were posted
in all provinces except Quebec and New Brunswick.

Overall for the year, the total value of residential building permits
amounted to $48.3 billion, almost unchanged from the total value
reached in 2012.

In the non-residential sector, the value of building permits
rose 3.7% to $2.8 billion in December, following a 4.5% decrease the
previous month. Quebec, Alberta and Newfoundland and Labrador were
mostly responsible for the growth at the national level, while declines
were recorded in the other provinces.

Between January and December 2013, municipalities issued
non-residential building permits worth $32.5 billion, relatively
unchanged from 2012.

Residential sector: Lower intentions for multi-family dwellings

Construction intentions for multi-family dwellings decreased 21.9% to
$1.5 billion in December, following an 8.4% decline in November. Most
of the decline occurred in British Columbia, Ontario and Alberta.
Despite decreasing in December, these three provinces posted strong
gains in the value of multi-family dwelling permits in 2013 compared
with the previous year.

Municipalities issued $2.2 billion worth of building permits for
single-family dwellings in December, up 1.5% from November and the third
increase in four months. Gains in Alberta, Quebec and Ontario more than
offset decreases in five provinces, led by British Columbia,
Saskatchewan and Nova Scotia.

Municipalities approved the construction of 15,565 new dwellings in
December, down 14.2% from November. The decrease in December was largely
the result of a 21.3% decline in multi-family dwellings to 9,439 units.
The number of single-family dwellings edged down 0.1% to 6,126 units.

Non-residential sector: Sharp rise in the institutional and industrial components

In the institutional component, the value of permits more than
doubled to $939 million in December, following a 32.8% decrease in
November. This was the highest level since March 2013. Institutional
construction intentions were up in five provinces, with the largest
increases in construction intentions for medical facilities in Quebec
and educational buildings in Alberta.

In the industrial component, the value of permits rose 34.9% to
$576 million, the highest level since May 2013. This advance was the
result of higher construction intentions for manufacturing plants in
Ontario and Quebec. Decreases were posted in five provinces, led by
Manitoba.

Following three consecutive monthly advances, Canadian municipalities
issued $1.3 billion worth of commercial building permits in December,
down 33.5% from November. The decline came mainly from lower
construction intentions for office buildings in Ontario and recreational
facilities and retail stores in British Columbia. In contrast, Quebec
posted the largest gain, as a result of higher construction intentions
for office buildings and, to a lesser degree, warehouses.

Provinces: Large declines in Ontario and British Columbia

The value of permits was down in seven provinces in December, with Ontario and British Columbia posting the largest declines.

The declines in Ontario and British Columbia were mostly attributable
to commercial buildings and multi-family dwellings. Saskatchewan
followed a distant third, as a result of lower construction intentions
for commercial and institutional buildings as well as single-family
dwellings.

Quebec recorded the largest increase, with institutional building
construction intentions accounting for most of the growth. Institutional
buildings and single-family dwellings explained the advance in Alberta.

In 2013, the total value of permits was down in six provinces
compared with 2012. The largest decreases were in British Columbia,
Quebec and Ontario. All three Prairie provinces posted advances, with
Alberta registering the largest increase in the total value of permits
for 2013. New Brunswick was the lone Atlantic province to post an
advance in 2013.

Significant decrease in construction intentions in Toronto and Vancouver

In December, the total value of permits was down in 23 of the 34 census metropolitan areas.

The largest decreases were in Toronto and Vancouver, followed by
Québec. In Toronto, the decline was principally attributable to
commercial buildings. Lower intentions for multi-family dwellings and
commercial buildings explained the decline in Vancouver. In Québec,
commercial construction intentions and, to a lesser extent, residential
buildings and institutional buildings were behind the decrease.

Montréal recorded the largest increase in December, followed by
Hamilton. The value of permits issued in Montréal advanced largely as a
result of higher construction intentions for institutional buildings
while in Hamilton, industrial and commercial buildings were responsible
for the advance.

For more information

http://www.statcan.gc.ca