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Value of building permits falls in March. Vancouver reports the largest decline, while Montréal sees the biggest increase.

Posted on February 15, 2018 by Circle Mortgage Team

The value of building permits issued by Canadian municipalities fell 5.8% to $7.0 billion in March, marking a second consecutive monthly decrease. Nationally, the decline was mainly the result of lower construction intentions for multi-family dwellings, particularly in British Columbia and Ontario. All provinces and territories, except Ontario and Quebec, registered decreases in the total value of building permits in March.
Residential sector: Multi-family component registers large decline
Municipalities issued $4.6 billion worth of residential building permits in March, down 8.4% from February. A notable decrease in the multi-family component more than offset higher construction intentions for single-family dwellings. Eight provinces reported declines in the residential sector in March, led by British Columbia and Ontario.
British Columbia and Ontario registered the biggest declines in the multi-family component in March, stemming from apartment buildings and, to a lesser extent, row houses. Conversely, single-family construction intentions rose 3.0% to $2.7 billion in March, with Ontario and Alberta leading the four provinces that posted gains.
In March, Canadian municipalities approved the construction of 16,821 new dwellings (-14.7% compared with February), consisting of 10,745 multi-family units (-19.4%) and 6,076 single units (-4.8%).
Provinces: British Columbia posts notable decline
British Columbia registered the largest decrease in the value of building permits in March, while Ontario and Quebec were the only provinces to report higher construction intentions. Multi-family dwellings were mainly responsible for the decline in British Columbia, led by apartment buildings. In Ontario, the large decrease in multi-family construction intentions was more than offset by increases in every other building component. Meanwhile, the gain in Quebec was mainly due to institutional structures, specifically nursing homes.
Census metropolitan areas: Vancouver registers largest decrease
The value of building permits fell in 19 of 36 census metropolitan areas in March. Vancouver reported the largest decline, while Montréal registered the biggest increase.
After posting two consecutive monthly increases, Vancouver registered a decrease in the value of building permits in March on the weakness of multi-family dwellings. Every component reported declines, except single-family dwellings.
In Montréal, the gain was mainly due to construction intentions for a retirement nursing home, as well as increased intentions for apartment-condominium constructions.
Edmonton posted the second-largest gain in the value of building permits among the census metropolitan areas in March, mainly the result of higher construction intentions for residential buildings. Apartment buildings led the advance while the single-family dwelling component increased for a third consecutive month.

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