Investment in the building construction sector faced a setback in October 2024, marking a 1.1% decrease, or a $243.3 million drop, to a total of $21.4 billion. The decline follows a stronger performance in September, where investments had risen by 2.6%. However, on a year-over-year basis, investment in building construction saw a positive change of 3.4%, reflecting continued growth in the sector despite monthly volatility.
A deeper look into the residential and non-residential components reveals contrasting trends. The residential sector saw a significant decline, with total investments falling by 2.1% to $14.9 billion. This downturn was primarily driven by the multi-unit construction segment, which posted a 5.1% decrease, or $423.2 million. Multi-unit investments had surged to a record high of $8.2 billion in September, but October saw a correction, particularly in Ontario, which experienced a notable $434.9 million drop. The decline in multi-unit construction investments in Ontario significantly outweighed gains in other provinces, such as Quebec, where investment rose by $76.5 million.
While the multi-unit sector struggled, single-family home investments showed a more positive outcome, rising 1.6% to reach $7.1 billion.
Geographically, the residential sector’s performance varied. Ontario, the country’s largest province, recorded the steepest decline in residential investment, down by $315.8 million. British Columbia and Nova Scotia also saw decreases, with investments falling by $67.7 million and $42.6 million, respectively. On the other hand, Quebec’s performance provided a glimmer of hope, as it posted a positive gain in residential building construction, contributing to a slight offset in the overall national figures.
In contrast, the non-residential construction sector showed growth, with investments rising by 1.1%, or $69.0 million, to a total of $6.5 billion. This was bolstered by increases in industrial, commercial, and institutional construction components. Industrial construction saw a notable increase of 1.9% (+$25.9 million), driven by gains in Ontario and Manitoba, though some provinces saw declines in this area. Commercial construction investment edged up marginally by 0.3% (+$11.1 million), with Ontario again leading the charge. However, several provinces, including Quebec and New Brunswick, recorded declines in commercial investments.
Institutional construction performed particularly well in October, rising 1.8% (+$32.0 million), with nearly all provinces and territories contributing to the increase. The gains in institutional construction were spread across the country, with only Quebec and New Brunswick seeing minor declines in this sector.
The overall investment trends reflect a mixed outlook for the industry. While the non-residential sector, particularly industrial and institutional construction, is experiencing steady growth, the residential market is facing challenges. The drop in multi-unit construction, driven largely by Ontario, indicates a potential slowdown in one of the country’s most crucial housing segments.