Canadian Construction Continues to Rise

Canadian housing permit values for single and multifamily housing in July rose by 4.1 percent and 4.2 percent, respectively. Gains for single family homes failed to offset declines in June but multifamily permits were on the rise for the fourth time in five months. Subsequently, the total number of residential permits issued was slightly less in July–17, 504 compared to 17,623 in June, a drop of -0.7 percent. Value of permits for residential construction rose to $4.1 billion in July. 

The value of non-residential construction rose to a preliminary figure of $3.9 billion from a revised figure of $2.6 billion in June. In comparison, total value of non-residential construction in July of 2012 was $2.5 billion. 

Construction values for commercial buildings increased by 89.2 percent month-over-month to $2.6 billion. Industrial permits recovered somewhat from a 27.9 percent drop in June, rising 11.6 percent in July to $505 million. Institutional construction value fell 6.5 percent to $791 million as construction intentions for medical and educational facilities dropped. 

Pricing 

New home prices rose 0.2 percent in July matching the increase in June. Toronto, Oshawa and Calgary led the increase in July pricing. Builders cited market conditions, increased material and labor costs, and shortage of developed land as reasons for higher selling prices.