In January 2024, the Canadian building permit landscape witnessed a significant resurgence, marking a notable increase of 13.5% totaling $10.8 billion. This surge comes on the heels of a downturn in December 2023, where a decrease of 11.5% was recorded. The data, released by Statistics Canada, sheds light on both the residential and non-residential sectors, providing valuable insights into the nation’s construction landscape.
The residential sector experienced a robust recovery in January, with the total monthly value of permits rising by 12.6% to $6.5 billion. This upswing was largely propelled by a remarkable resurgence in multi-unit construction intentions, witnessing a staggering 35.1% increase to $4.0 billion. Ontario led this charge with a 29.1% surge to $1.4 billion, concentrated in metropolitan areas such as Toronto, Kitchener–Cambridge–Waterloo, and London. Quebec and British Columbia also demonstrated substantial gains in multi-unit permit values, with increases of 61.6% and 36.7%, respectively.
However, amidst the overall growth, there was a notable decline in the total value of single-family dwelling permits, dropping by 10.3% to $2.6 billion. This decline was observed across nine provinces, tempering the residential sector’s overall expansion. Despite this, 15,200 new dwellings in multi-unit buildings and 4,000 new single-family dwellings were authorized across Canada in January, indicating continued activity in the housing market.
The non-residential sector witnessed a commendable rebound in January, with the total monthly value of permits surging by 14.8% to $4.2 billion. This growth was primarily attributed to the commercial component, which soared by 34.5% to $2.3 billion, reaching its highest level since April 2023. Notably, a significant contributor to this upsurge was the issuance of a $200 million permit for a new data centre in Lévis, Quebec.
Ontario and Quebec emerged as the frontrunners in driving overall growth, particularly in the residential and non-residential sectors. Ontario’s substantial increase in multi-unit construction intentions underscores its resilience and prominence in the Canadian real estate landscape. Similarly, Quebec’s surge in commercial projects, exemplified by the development of a new data centre, highlights its economic vitality and attractiveness to investors.
Despite facing challenges in the previous month, the sector bounced back strongly, fueled by robust activity in both residential and non-residential projects. Looking ahead, continued momentum in building permit issuance signals optimism for sustained growth and development in the Canadian economy.