In September, Statistics Canada reported a 6.5% decrease in the total monthly value of building permits in Canada, primarily due to a drop in the institutional component. On a constant dollar basis, the total value of building permits was down 7.5% to $6.4 billion in September.

However, there was a 4.3% increase in the total monthly value of residential permits, reaching $7.2 billion, driven by a significant 37.2% increase in construction intentions in British Columbia. The census metropolitan areas (CMAs) of Vancouver, Kelowna, and Victoria played a substantial role in this growth.

Notable monthly gains in the value of residential permits were observed in Newfoundland and Labrador, Prince Edward Island, Nova Scotia, and Quebec, offsetting declines in other provinces. In total, 21,700 new dwelling units were authorized in September, marking a 5.6% increase from August 2023 and a 2.3% increase from September 2022.

On the non-residential front, the total monthly value of permits fell by 21.0% in September to $4.0 billion, primarily due to a decline in construction intentions for the institutional component. However, it’s worth noting that despite this decline, the total value of non-residential building permits in September 2023 was 18.7% higher than in September 2022, demonstrating a consistent upward trend over the past year.

In the third quarter of 2023, the total value of building permits increased by 4.9% from the second quarter, reaching $34.6 billion. The residential sector saw a 3.4% increase to $21.2 billion, while the non-residential sector was up 7.3% to $13.5 billion.

All three non-residential components experienced quarterly gains in the value of permits, with the institutional component reaching a new quarterly record high of $4.5 billion. This marked the fourth consecutive quarterly increase for the institutional component.

In the residential sector, 64,400 new units were authorized through building permits in the third quarter of 2023. Notably, there was a 12.1% increase in the number of new single-family homes authorized in this quarter, ending a streak of six consecutive quarterly declines. Peterborough had the highest growth rate in the number of new single-family homes planned, with a remarkable 151.2% increase and 90 new units authorized.

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