Residential Sector Leads Building Permit Increase

January rang in the new year with a record high total value of building permits issued, rising 8.2 per cent to $9.9 billion and surpassing the previous record of $9.6 billion set in April 2019, says Statistics Canada. These gains were driven primarily by the residential sector. The value of permits issued in the residential sector increased 10.6 per cent to $7.1 billion in January ‒ rising past the previous peak of $6.5 billion posted two months earlier. Provincial highs were reported in Ontario, Quebec, New Brunswick, and Manitoba. The majority of the rise in the residential sector was attributable to single-family homes, which climbed 15.1 per cent to a record $3.5 billion, the eighth increase in nine months. Multi-family permits increased 6.5 per cent to $3.5 billion, mainly driven by higher construction intentions in Ontario (+17.1 per cent). The total value of permits issued for non-residential buildings rose 2.6 per cent to $2.8 billion in January after a 10.8 per cent drop in December. Following three consecutive monthly declines, industrial permits bounced back to average 2020 levels, increasing 31.7 per cent to $535 million in January.