In April 2024, total investment in building construction experienced a notable downturn, with a 2.0% monthly decrease, bringing the total to $20.5 billion according to Statistics Canada.
The residential sector bore the brunt of this decline, with investment falling by 2.7% to $14.2 billion. This reduction equates to a $386.7 million drop from March 2024. The decrease was widespread, affecting nine of the thirteen provinces and territories. Ontario and Alberta were the most impacted, with investments falling by $123.9 million to $5.5 billion and $118.4 million to $1.7 billion, respectively. Despite these declines, some provinces saw growth, notably Saskatchewan, where investment rose by $33.7 million to $287.1 million.
Within the residential sector, single-family home investment saw a substantial decline of 4.7%, settling at $6.9 billion. Saskatchewan was the outlier, reporting a 17.7% increase, amounting to a $29.8 million rise. On the other hand, multi-unit family investments experienced a modest decline of 0.6%, totaling $7.3 billion. This drop was somewhat mitigated by gains in Nova Scotia and Quebec, with increases of 10.5% and 1.1%, respectively.
Non-residential construction investment saw a slight decrease of 0.5%, amounting to a $31.2 million drop to $6.3 billion. This overall decrease was influenced by declines in the industrial and commercial components, which fell by 1.4% and 0.7%, respectively. The industrial sector’s investment decreased by $19.5 million, while the commercial sector’s investment reduced by $23.2 million. These declines were slightly offset by a 0.6% increase in the institutional component, which rose by $11.4 million.
Notably, Manitoba led the gains in institutional construction investment, reporting a 10.2% increase, equating to a $7.4 million rise. This marks the 15th consecutive month of increased institutional investment for Manitoba, nearly doubling year-over-year from $40.0 million in April 2023 to $79.8 million in April 2024.
On a constant dollar basis, using 2017 as the reference year, the total investment in building construction decreased by 1.9% to $12.6 billion in April 2024. The decline in both residential and non-residential sectors highlights the broad-based challenges facing the construction industry.