The latest data from Statistics Canada indicates a significant increase in the total value of building permits across the country, reflecting robust construction activity in both residential and non-residential sectors. In April 2024, the total value of building permits surged by 20.5% to reach $12.8 billion, marking a substantial rise from the previous month.
The residential sector experienced a noteworthy 21.0% increase in the value of building permits, totaling $8.0 billion in April. This growth was primarily driven by an unprecedented rise in the multi-unit residential component, which saw a 32.6% increase to $5.4 billion. Single-family home permits also edged up by 2.4% to $2.6 billion, contributing to the overall growth.
British Columbia led this surge with a remarkable 75.2% increase in residential permits, amounting to $1.9 billion. This figure not only set a new monthly record for the province but also surpassed the previous high of $1.5 billion recorded in June 2023. Significant contributions came from major multi-unit construction projects in cities such as Surrey and Coquitlam, alongside Ontario’s notable 31.9% increase in the multi-unit segment.
The authorization of new housing units also reached impressive numbers, with 4,300 single-family homes and a record 22,600 multi-unit dwellings approved in April. British Columbia’s authorization of 7,200 new multi-unit dwellings played a crucial role in this record-setting month.
Despite the strong performance in April, the 12-month cumulative total of authorized units from May 2023 to April 2024 showed little change, with a slight increase of 200 units (+0.1%) compared to the same period a year earlier.
The non-residential sector also saw substantial growth in April, with the value of building permits increasing by 19.6% to $4.8 billion. This sector’s expansion was broad-based, with notable increases in commercial (+21.3%; +$470.7 million), institutional (+17.7%; +$191.5 million), and industrial (+17.4%; +$126.0 million) components.
British Columbia again played a pivotal role, contributing a significant 149.9% increase (+$605.6 million) in the non-residential sector. This growth underscores the province’s significant influence on the national construction landscape in April 2024.
On a constant dollar basis (using 2017 as the reference year), the total value of building permits grew by 20.7% in April, reaching the highest level since June 2023. This indicates a robust and inflation-adjusted growth in construction intentions, highlighting the sector’s resilience and capacity for expansion.
The remarkable increase in building permits, particularly in British Columbia, points to a strong demand for both residential and commercial real estate. This surge is likely to have positive ripple effects on the broader economy, potentially leading to increased employment in the construction sector and related industries.