Investment in residential construction continues its decline in June

Aug. 21, 2023 – Investment in residential construction declined for the fourth straight month, falling 4.5 per cent to $12.1 billion in June. Investment in non-residential construction edged down 0.2 per cent to $5.9 billion. Overall, investment in building construction fell 3.1 per cent to $18.0 billion in June.

After adjusting for inflation (2012=100), investment in building construction decreased 3.4 per cent to $10.3 billion.

Residential sector continues to fall

Residential construction declined for the fourth consecutive month, falling 4.5 per cent to $12.1 billion in June. Ontario (-5.8 per cent to $5.1 billion) accounted for most of the drop.

Single family home construction fell 5.7 per cent to $6.2 billion in June, with declines seen in eight provinces.

Multi-unit construction declined for the eighth straight month, falling 3.1 per cent to $5.9 billion in June, the lowest level since September 2021.

Second quarter of 2023 declines due to residential sector

Overall investment in building construction declined 5.2 per cent to $55.7 billion in the second quarter, entirely due to a drop in residential construction (-8.2 per cent to $37.9 billion). Non-residential construction was up 1.8 per cent to $17.8 billion.

Investment in single family homes fell 10.5 per cent to $19.7 billion in the second quarter, the largest decline since the second quarter of 2020. Multi-unit construction declined for the third straight quarter, falling 5.7 per cent to $18.2 billion in the second quarter of 2023.