Investment in building construction in Canada rose slightly by 0.2% in August 2024, reaching $21.0 billion. This follows a 1.6% drop in July, showing a slow recovery led by growth in non-residential construction, while residential investment declined.
Residential building investment declined marginally by 0.1% to $14.6 billion in August, representing a decrease of $14.1 million. This downturn was felt across four provinces, most notably in Quebec, where investment fell by $126.4 million. However, gains in six other provinces and the three territories tempered these declines, with Ontario posting the most significant increase in residential spending.
In the single-family home category, investment inched up by 0.1% to $6.7 billion, recovering slightly from a sharp 2.2% drop in July. Though Ontario saw a decline of $29.9 million, overall growth was recorded in other provinces and territories, reflecting resilience in parts of the country.
Multi-unit residential construction faced more significant challenges, with a 0.3% decrease to $7.9 billion, a drop of $23.1 million. Quebec once again led the declines, marking its second consecutive monthly decrease with a loss of $121.9 million. Despite these challenges, Ontario stood out, showing growth of $125.5 million for the third straight month in the multi-unit sector.
While the residential sector showed mixed performance, the non-residential sector achieved a record high, climbing 1.0% to $6.4 billion. This increase of $63.2 million in August was driven by gains across institutional, industrial, and commercial construction projects.
Institutional construction saw a 1.3% rise to $1.8 billion, setting a new record for this category. Ontario led the charge, contributing an additional $18.3 million to the sector and marking 14 consecutive months of growth in institutional investment. Other provinces and territories, including British Columbia and Alberta, also posted gains.
Industrial construction investment expanded by 1.9%, reaching $1.4 billion in August. British Columbia, with an increase of $14.5 million, was the leading province, followed by Ontario and Alberta, which contributed $11.6 million and $6.1 million, respectively.
Commercial construction, while growing more modestly, posted a 0.4% increase to $3.2 billion. British Columbia once again led the growth, adding $12.0 million, closely followed by Ontario with a gain of $11.5 million.
Despite the mixed monthly performance, year-over-year figures paint a more positive picture for Canada’s building construction investment. Overall investment increased by 7.2% in August compared to the same month last year. On a constant dollar basis (2017=100), investment held steady at $12.8 billion from July to August but rose by 4.2% compared to August 2023, signaling a broader recovery in the construction sector.
As Canada’s construction landscape continues to evolve, the contrast between residential and non-residential sectors may persist. While the market faces uncertainty, especially in Quebec, the robust performance of non-residential projects offers optimism for sustained growth in the sector.
The data reinforces the importance of regional differences in investment trends. Ontario remains a key driver of growth across residential and non-residential categories, while provinces like Quebec and British Columbia present varied dynamics in their construction markets.