Statistics Canada reports that investment in building construction increased by 1.9% to $18.4 billion in December. Gains were reported in both the residential and non-residential sectors. On a constant dollar basis (2012=100), investment in building construction grew 1.2% to $11.5 billion.

Residential construction investment rose 2.2% to $13.4 billion in December, with Ontario accounting for more than half of the monthly increase.

Investment in single family homes was up 3.5% to $7.4 billion with increases posted in eight provinces.

Multi-unit construction investment increased by 0.7% to $6.1 billion. Gains from Ontario (+1.0%) helped to offset declines posted in Quebec (-1.0%) and Saskatchewan (-5.5%). New Brunswick and Nova Scotia also showed notable strength.

Commercial investment advanced by 1.7% to $2.7 billion. Alberta (+6.5%) led the way, partly because of the BMO convention centre expansion project in Calgary.

Industrial construction investment increased by 1.6% to $842 million, led by Ontario (+2.4%) and Quebec (+1.9%).

Conversely, investment in institutional construction posted its first decline since late 2020, with eight provinces reporting decreases.

Overall, non-residential construction investment increased by 1.1% in December to $4.9 billion.

Investment in non-residential construction was up 4.1% to $14.7 billion, representing the largest quarterly increase since the third quarter of 2017. Gains were led by the commercial component (+4.9%), which posted its fourth consecutive quarterly increase. Institutional (+4.2%) and industrial components (+1.2%) showed strength as well.

Investment in residential construction was up 1.0% compared with the third quarter, with most of the growth coming from Ontario. Newfoundland and Labrador also posted notable gains following several quarterly declines. Single-unit investment was up 1.4% with increases in eight provinces, while multi-unit investment edged up 0.5%.

Overall, the total value of investment in building construction increased by 1.8% to $54.2 billion in the fourth quarter.

Overall, investment in building construction had a record year, jumping 19.3% to $218.2 billion in 2021. On a constant dollar basis (2012=100), investment in building construction advanced moderately by 3.0%, reflecting strong growth in construction costs in 2021.

Investment in residential construction was up 28.4% to $162.0 billion, with single-unit investment accounting for more than half of the gain. Similarly, Canada Mortgage and Housing Corporation reported a 20% jump in construction starts from 2020.

Despite a strong fourth quarter, investment in non-residential construction saw a slight decrease of 0.9% to $56.2 billion in 2021. The decrease reported by commercial (-5.4%) and industrial (-3.4%) construction was somewhat offset by growth in institutional investment (up 12.0% to $15.2 billion).