Total Building Permit Values in Canada Down 3.6% in November 2011

Canadian municipalities saw the value of building permit applications decline by -3.6% as contractors across Canada took out $6.1 billion worth of permits in November 2011. This follows an especially strong October, which resulted in a +11.9% increase in building permit intentions according to the latest figures released by Statistics Canada on January 9, 2012.

A decline in non-residential building permits in November 2011, particularly in Ontario, offset increases in the residential sector across Canada.

The November decline was not a surprise as a recent Reuters survey, indicated that analyst’s expected a -3.0% overall decline in Canadian building permit activity, based on a median forecast.

Canadian residential sector building permit values increased by +6.9% in November 2011 while non-residential sector permits dropped by -17.6% across Canada for the month.

Prior to the October increase, municipalities across Canada saw a steady 3-month decline in building permit intentions in July, August and September 2011.

The total value of provincial building permits in November 2011 increased in Prince Edward Island, Nova Scotia, Manitoba, and British Columbia while Newfoundland and Labrador, New Brunswick, Quebec, Ontario, Saskatchewan, and Alberta saw declines.

Total building permits % monthly change in Canadian provinces:

• Newfoundland and Labrador – Total Building Permit Values Down -39.8% in November 2011
• Prince Edward Island – Total Building Permit Values Up +15.1% in November 2011
• Nova Scotia – Total Building Permit Values Up +53.8% in November 2011
• New Brunswick – Total Building Permit Values Down -7.3% in November 2011
• Quebec – Total Building Permit Values Down -1.0% in November 2011
• Ontario – Total Building Permit Values Down -13.2% in November 2011
• Manitoba – Total Building Permit Values Up +17.4% in November 2011
• Saskatchewan – Total Building Permit Values Down -10.5% in November 2011
• Alberta – Total Building Permit Values Down -7.9% in November 2011
• British Columbia – Total Building Permit Values Up +31.5% in November 2011

In their latest report issued on January 9, 2012, Statistics Canada stated:

Provincial view:

In November, the value of building permits decreased in six provinces, led by Ontario, followed by Alberta and Newfoundland and Labrador.

The declines in Ontario originated from lower construction intentions for institutional and commercial buildings, as well as multi-family dwellings. In Alberta, the drop was particularly attributable to institutional and industrial buildings, and single-family dwellings. Newfoundland and Labrador’s decrease was mainly the result of lower construction intentions for commercial buildings.

On the other hand, British Columbia recorded the largest increase as a result of gains in the residential sector as well as in the institutional and commercial buildings. Nova Scotia followed with increases in both residential and non-residential sectors.

Canadian residential sector building permits increased by +6.9% in November 2011, moving up to $3.9 billion following three consecutive months of decline. Statistics Canada figures show that British Columbia led the way with the highest value of residential construction intentions in November 2011.

Residential building permits % monthly change in Canadian provinces:

• Newfoundland and Labrador – Residential Building Permit Values Up +5.9% in November 2011
• Prince Edward Island – Residential Building Permit Values Up +2.9% in November 2011
• Nova Scotia – Residential Building Permit Values Up +54.1% in November 2011
• New Brunswick – Residential Building Permit Values Up +6.0% in November 2011
• Quebec – Residential Building Permit Values Up +1.5% in November 2011
• Ontario – Residential Building Permit Values Up +6.9% in November 2011
• Manitoba – Residential Building Permit Values Up +12.3% in November 2011
• Saskatchewan – Residential Building Permit Values Down -15.0% in November 2011
• Alberta – Residential Building Permit Values Down -5.0% in November 2011
• British Columbia – Residential Building Permit Values Up +29.5% in November 2011

Residential sector:

The value of building permits for single-family dwellings rose 8.2% to $2.4 billion, after posting slight changes during the three previous months. The advance was attributable to higher construction intentions in seven provinces, led by Ontario.

After three consecutive monthly declines, multi-family dwelling permits increased 5.0% to $1.5 billion. Gains in five provinces were behind the increase, with British Columbia posting the largest advance, followed by Nova Scotia and Quebec.

Nationally, municipalities approved the construction of 16,895 new dwellings, up 5.8% from October. The increase came from both single-family dwellings, which increased 6.2% to 7,199 units, and multi-family dwellings, which rose 5.5% to 9,696 units.

Non-residential building permits in Canada decreased by -17.6% to $2.2 billion in November 2011 as contractors slowed new building permit intentions in the sector.

Non-Residential building permits % monthly change in Canadian provinces:

• Newfoundland and Labrador – Non-Residential Building Permit Values Down -58.5% in September 2011
• Prince Edward Island – Non-Residential Building Permit Values Down -82.4% in November 2011
• Nova Scotia – Non-Residential Building Permit Values Up +31.1% in November 2011
• New Brunswick – Non-Residential Building Permit Values Down -24.0% in November 2011
• Quebec – Non-Residential Building Permit Values Down -5.7% in November 2011
• Ontario – Non-Residential Building Permit Values Down -32.2% in November 2011
• Manitoba – Non-Residential Building Permit Values Up +23.5% in November 2011
• Saskatchewan – Non-Residential Building Permit Values Down -5.2% in November 2011
• Alberta – Non-Residential Building Permit Values Down -12.5% in November 2011
• British Columbia – Non-Residential Building Permit Values Up +36.0% in November 2011

Non-residential sector:

The value of institutional permits declined 34.1% to $692 million, following an increase of 178.8% in October. Ontario posted the largest decline among the five provinces that registered decreases. Ontario’s decline came from lower construction intentions, particularly for medical facilities and government buildings, which had recorded significant gains the previous month.

Municipalities issued industrial permits worth $439 million, down 12.3% from October. This drop followed three consecutive monthly rises. The largest declines were in permits for manufacturing plants in Quebec and utilities buildings in Alberta and Manitoba. Ontario recorded the largest increases as a result of higher construction intentions for transportation and utilities buildings.

Commercial building intentions declined for a second consecutive month, falling 5.1% to $1.1 billion. Gains reported in seven provinces were not enough to offset decreases in Ontario, Newfoundland and Labrador and New Brunswick. Ontario posted the largest decline as a result of lower construction intentions, mostly for retail stores and recreational facilities.

The Canadian Building Permits Survey is released monthly by Statistics Canada. It covers over 2,400 municipalities across the country representing 95% of the Canadian population.