In what appears to be a belated but promising development, the Canadian construction sector finally saw a noteworthy uptick in investment in November 2023, as per data released today. The total investment in building construction reached $19.8 billion, marking a 1.7% increase from the previous month.
While the residential sector contributed significantly to this growth, with a robust 2.2% surge to $13.7 billion, it’s crucial to acknowledge the delayed momentum. Increased construction activities in Nova Scotia (+10.4%), Alberta (+4.4%), Ontario (+4.1%), British Columbia (+2.3%), and Quebec (+1.0%) were key drivers, but these gains may have come later than expected.
A notable highlight is Alberta’s record-high investment in the residential sector, reaching $2.0 billion in November. However, the fact that it took until now to achieve this milestone raises questions about the timeliness of government initiatives and support for the construction industry.
The residential building construction sector showed a nuanced growth pattern, with investment in detached single-family homes rising by 1.2% to $6.6 billion for the fourth consecutive month. Concurrently, investment in multi-unit buildings, including apartments, semi-detached, and row homes, saw a substantial 3.1% increase, reaching $7.2 billion.
Unfortunately, the positive trends in some provinces were offset by a deceleration in new construction pace in other regions, emphasizing the need for more comprehensive and timely government intervention.
On the non-residential front, the modest 0.4% uptick in November, reaching $6.0 billion, leaves room for criticism. The institutional sector played a pivotal role in this increase, witnessing a growth of 3.1% to $1.6 billion, while the industrial sector experienced a 1.0% increase, reaching $1.3 billion. However, the decline in the commercial sector by 1.2% to $3.2 billion is concerning and highlights potential gaps in government strategies to bolster this crucial segment.
As we navigate the next phases of recovery, a more timely and comprehensive approach will be essential to capitalize on the industry’s potential.