December witnessed a slight uptick in Canadian building construction investment, marking a 0.3% increase to reach $19.8 billion according to Statistics Canada. The residential sector contributed significantly, growing by 0.3% to $13.8 billion, while the non-residential sector also saw a 0.3% rise to $6.1 billion. This growth reflects a resilient construction industry amidst varying economic conditions.

In real terms (constant dollar basis, 2017=100), the overall investment remained steady at $12.2 billion. The residential sector’s growth was notable, driven by significant increases in Quebec, Ontario, British Columbia, and Prince Edward Island. However, this growth was partially offset by declines in other provinces, indicating a mixed regional performance.

Investment trends diverged within the residential sector, with detached single-family homes seeing a 1.0% decline to $6.5 billion, while multi-unit buildings experienced a 1.6% increase to $7.3 billion. The non-residential sector, on the other hand, recorded growth across nine provinces, except for Newfoundland and Labrador.

The institutional and industrial segments of the non-residential sector witnessed gains, contrasting with a decline in commercial investment. The fourth quarter of 2023 was particularly strong for building construction investment, growing 7.8% to $59.0 billion, predominantly fueled by the residential sector’s impressive 11.1% increase to $40.9 billion.

Despite this quarterly surge, the annual overview presents a different picture. Investment in building construction saw a 6.6% year-over-year decrease in 2023, totaling $229.1 billion. This decline was more pronounced in the residential sector, which fell 16.9% to $94.0 billion, with most provinces experiencing downturns.

Conversely, the non-residential sector edged up 0.6% to $49.8 billion in 2023, marking the second consecutive year of growth. This was largely attributed to the industrial component’s 11.5% increase, which somewhat balanced the decreases in commercial and institutional investments.

This data underscores the dynamic nature of Canada’s construction industry, with varying trends across different sectors and regions, highlighting the importance of continuous monitoring and adaptation to changing market conditions.

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