Residential Sector Drives October Building Permits Down

The total value of building permits in Canada declined 1.4 per cent in October to $10 billion. Losses in the residential sector more than offset gains from the non-residential sector. On a constant dollar basis, the total value of building permits decreased 0.9 per cent to $6 billion. The residential sector cooled off for a second month, down 6.4 per cent to $6.5 billion nationally in October. Similarly, the number of new residential units decreased 4.6 per cent, mainly due to single-family dwellings (-9.3 per cent) which fell for the fifth consecutive month. The value of building permits in the multi-family component decreased 6.9 per cent, with Ontario posting its second consecutive decline after reaching its peak in August. Conversely, Manitoba saw a notable increase of 14.3 per cent following two weaker months. The total permit value of the non-residential sector increased 9.5 per cent to $3.5 billion in October. Construction intentions in the commercial component sharply increased by 18 per cent, while the industrial component sharply increased by 16.2 per cent, largely due to Ontario. The institutional component continued to slow as it dropped 17.1 per cent for the month, following a 38.2 per cent decrease the previous month, reaching its lowest value since May 2020.