Statistics Canada reports that investment in building construction saw a notable increase of 2.8% in June, reaching $21.4 billion, marking a significant rise following a modest 0.8% growth in May. These gains partially reflect the record-setting $13.4 billion in total building permits issued in April, as current investment levels are often driven by permits issued in preceding months.

The June uptick in construction investment was primarily fueled by the residential sector, which surged by 3.8%, totaling $15.0 billion. This sector’s growth outpaced the non-residential sector, which saw a modest increase of 0.4%, bringing its total to $6.4 billion. This robust performance in residential construction highlights the ongoing demand for housing and the sector’s significant role in driving the overall growth in building investments.

On a year-over-year basis, investment in building construction rose by 10.0% in June, following a 7.0% increase in May. This upward trend indicates sustained growth in the construction industry, with June’s figures further cementing the sector’s resilience and importance in the broader economy.

When adjusted for inflation (2017=100), the investment in building construction grew by 2.6% to $13.0 billion in June compared to the previous month, and by 6.8% year-over-year. The residential sector led the charge, with an increase of 3.8% (+$546.7 million), reaching $15.0 billion. Nine provinces and two territories saw monthly increases, with Quebec (+$265.0 million to $3.3 billion) leading the way for the second consecutive month. Other notable increases were recorded in Ontario (+$73.2 million to $5.6 billion), British Columbia (+$58.9 million to $2.5 billion), and Manitoba (+$47.8 million to $0.5 billion). Nova Scotia, however, was the only province to experience a decline, with a decrease of $1.2 million to $468.0 million.

Investment in multi-unit residential construction rose by 6.0% (+$454.7 million), totaling $8.1 billion in June. This growth was largely driven by significant investments in Quebec (+$247.6 million to $1.8 billion) and Ontario (+$134.7 million to $2.9 billion), underscoring the increasing demand for multi-family housing options in these key regions.

After two consecutive months of decline, investment in single-family homes grew by 1.4% to $6.9 billion in June, indicating a rebound in this segment of the market.

The non-residential sector also saw a slight increase, with investment edging up 0.4% (+$26.3 million) to $6.4 billion in June. This growth was driven primarily by the commercial component, which rose by $27.2 million to $3.2 billion. Meanwhile, investments in the industrial and institutional components remained relatively flat.

In the second quarter of the year, total investment in building construction reached $62.8 billion, marking a 0.4% increase from the previous quarter and the fourth consecutive quarterly rise. Year-over-year, investment grew by 7.2%, reflecting the ongoing strength of the construction sector.

Residential construction investment for the quarter saw a slight increase of 0.4% to $43.7 billion. While the multi-unit component rose by 5.1% (+$1.1 billion), this gain was offset by a decline in the single-family home component, which fell by 4.3% (-$923.1 million).

The non-residential sector continued its steady growth with a 0.3% increase to $19.1 billion in the second quarter, marking the 14th consecutive quarterly gain. The institutional component led this growth with a 1.9% increase to $5.4 billion, though this was moderated by slight declines in the industrial (-0.6% to $4.1 billion) and commercial (-0.2% to $9.6 billion) components.

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