Investment in building construction for June 2024

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According to Statistics Canada’s The Daily, investment in building construction grew 2.8 per cent to $21.4 billion in June, after a slight increase of 0.8 per cent in May. These increases partly reflect April’s record high of $13.4 billion in total building permits value, since investment levels for a given period are driven by permits issued in prior months.

The June increase in investment in building construction was primarily driven by the residential sector while the gains in the non-residential sector were modest. Year over year, investment in building construction rose 10 per cent in June, following a seven per cent increase in May. On a constant dollar basis, investment in building construction was up 2.6 per cent to $13.0 billion in June, compared with the previous month, and 6.8 per cent year over year.

Quebec drives the growth in residential construction in June

Investment in residential building construction rose by 3.8 per cent to $15 billion in June. Monthly increases were recorded in nine provinces and two territories, with Quebec leading the national gains for the second month in a row. Ontario, British Columbia and Manitoba also recorded an increase in residential construction, while Nova Scotia was the only province to post a decrease.

Overall, investment in multi-unit construction grew six per cent to $8.1 billion in June, driven by Quebec and Ontario. Single-family home investment was up 1.4 per cent to $6.9 billion in June, following two consecutive monthly declines.

Non-residential construction edges up in June

Investment in non-residential construction edged up 0.4 per cent to $6.4 billion in June, led by growth in the commercial component. Meanwhile, investment in both the industrial and institutional components was virtually unchanged.

Second quarter of 2024 marks fourth quarterly increase

Investment in building construction was $62.8 billion in the second quarter, up 0.4 per cent from the previous quarter, and marking the fourth quarterly increase in a row. Year over year, investment in building construction grew 7.2 per cent in the second quarter.

Investment in residential building construction increased slightly by 0.4 per cent to $43.7 billion in the second quarter. Gains in the multi-unit component were tempered by declines in the single-family home component.

Investment in the non-residential sector edged up 0.3 per cent to $19.1 billion in the second quarter, the 14th consecutive quarterly gain for the sector in Canada. An increase in the institutional component was moderated by declines in both the industrial and commercial components.