The value of building permits issued by Canadian municipalities increased 3.1% to $8.4 billion in March, following a 2.8% decline in February. The rise was mainly the result of higher construction intentions for multi-family dwellings, particularly in Quebec and British Columbia, and, to a lesser extent, by the commercial component.
Canada Residential sector: Rise in multi-family component offsets decline in single-family component
Municipalities issued $5.4 billion worth of residential building permits in March, up 2.3% from February. A notable increase in the multi-family component more than offset lower construction intentions for single-family dwellings. Although eight provinces reported declines in the residential sector in March, higher construction intentions in Quebec (+$373.8 million) and British Columbia (+$179.5 million) raised the national total.
The value of building permits for multi-family dwellings rose 12.2% to a record $3.0 billion in March. The increase was largely attributable to higher construction intentions for apartment buildings. Quebec and British Columbia registered the largest increases in the multi-family component, stemming from apartment buildings and, to a lesser extent, row houses.
Conversely, single-family construction intentions fell 7.9% to $2.4 billion in March, with Ontario posting the largest decline (-13.7% or -$153.1 million). The census metropolitan area (CMA) of Toronto posted the largest decrease in the single-family component, down 27.6% to $302.3 million and a second consecutive monthly decline.