The construction sector slowed in July as the total value of building permits edged down slightly, pulled lower by declines in industrial and institutional projects, even as residential construction showed resilience.
Municipalities issued $11.9 billion in building permits in July, a 0.1 percent decrease from June. The dip reflects a sharp decline in the non-residential sector in industrial and institutional construction, which is largely offset by renewed strength in the residential sector, led by Ontario.
On a constant dollar basis, the overall value of permits was down 0.3 percent from the previous month and sat 8.2 percent below levels a year earlier.
The non-residential sector declined by $279.2 million to $4.6 billion in July. Industrial construction fell by $252.9 million, with Ontario and Quebec posting the largest declines. Institutional projects also slipped, down $196 million, after a strong June that had been boosted by hospital construction in Alberta. Commercial intentions, however, provided a counterweight, rising $169.7 million with notable gains in Ontario, Quebec and Nunavut.
In contrast, the residential sector posted a gain of $268.3 million to reach $7.3 billion. Ontario was the standout, adding nearly half a billion dollars in permits and driving most of the increase nationwide. The single-family home component climbed $143.5 million to $2.6 billion, with Ontario and Alberta leading the growth. Seven provinces and three territories reported increases, though declines in Quebec, Manitoba and British Columbia.
The multi-unit segment rose $124.8 million to $4.7 billion, once again dominated by Ontario, where Toronto alone accounted for nearly $330 million of the increase. Alberta also saw notable gains. Still, declines in Quebec, Nova Scotia and New Brunswick partially offset the growth.
Across the country, 20,000 multi-unit dwellings and 4,100 single-family homes were authorized in July, an overall increase of 1.9 per cent from June.