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The total value of building permits rose 11 percent to $13.1 billion in December. The increase was led by a 21.2 percent increase in the residential sector, largely due to gains in Ontario and British Columbia. Using 2017 dollars, the total value of building permits issued in December grew 8.8 percent from the previous month and was up 30.5 percent on a year-over-year basis.
Multi-unit permits drive residential sector growth
The total value of residential permits increased by $1.6 billion to $9 billion in December. Multi-unit construction intentions (up $1.5 billion) contributed the most to the gain, posting a 33.3 percent increase from the previous month.
The increase in the total value of multi-unit permits in December was primarily attributable to gains in Ontario ($985.5 million) and British Columbia ($566.0 million).
Construction intentions for single-family homes were up 1.8 percent ($52.1 million) to $2.9 billion in December, recording gains across six provinces and two territories. British Columbia ($29.3 million) led the rise, followed by Ontario ($28.5 million) and Manitoba ($27.8 million).
Quarterly review: growth in residential construction intentions leads to fourth consecutive quarterly increase
The total value of building permits in the fourth quarter edged up $430.8 million (1.2 percent) to $37.5 billion, marking the fourth consecutive, albeit slowest, quarterly increase in 2024. In the fourth quarter, the residential sector led the growth, while the non-residential sector retreated after reaching a record high level in the third quarter.
Residential construction intentions grew by $1.8 billion (eight percent) to $24.3 billion in the fourth quarter. Multi-family construction intentions ($1.3 billion) contributed 70.1 percent of these gains, while the single-family component ($535.3 million) accounted for 29.9 percent.
Ontario (up $1 billion) led the growth in multi-family construction intentions in the fourth quarter, supported by major projects in the Toronto census metropolitan area ($997.8 million). In the single-family component, Alberta ($218.4 million) and Ontario ($172.5 million) led the growth, supported by six additional provinces and one territory.
The value of non-residential building permits declined by $1.4 billion (9.3 percent) to $13.3 billion in the fourth quarter, after reaching a record high in the previous quarter. Ontario’s non-residential sector ($1.1 billion) led the decline, despite reporting its second-highest level in the series, due to its industrial (down $824.0 million) and commercial (down $336 million) components.
Overall, Canada’s industrial ($876.1 million) and commercial ($635.0 million) components declined in the fourth quarter, while the institutional component ($150.1 million) increased.