The Feed

BC Smashes Provincial Record for Home Building Investment: StatCan

Sep 21, 2016

BC reported another record month for home building investment in July, with spending on new housing up 33.7 per cent year over year and a rise of 2.7 per cent even over June’s record, to $976,168,000, Statistics Canada reported September 21. BC’s multi-family buildings once again led the construction expenditure, up 53.5 per cent year over year to just under $461 million,an increase of 6.2 per cent from June. Condo-apartments have in recent months emerged as the housing type attracting the most construction investment.

Single-family home construction investment was up more than 17.9 per cent compared with July 2015 to $396.7million. However, this form of new housing saw another month-over-month slide in investment, down two per cent compared with June. Investment in construction of attached homes such as townhouses and row houses was up 39 per cent year over year to $87.9million, a 5.2 per cent rise over the previous month. And for the first time in many months, duplex investment also increased – up 3.8 per cent over last July to $30.67million, and an uncharacteristic month-over-month jump of 9.5 per cent. However, the absolute numbers are small enough for percentage changes to be more volatile than other housing types. As usual, the only province to outstrip BC’s total new housing construction spend in July was Ontario, which once again invested around twice that of BC, at $1.9 billion. However, BC’s year-over-year growth was the highest of all provinces and territories, with Ontario coming in second with a 24.8 per cent rise.

Investment in new housing construction fell in nine of Canada’s 14 provinces and territories, with year-over-year declines in Newfoundland and Labrador (which are combined), PEI, Nova Scotia, New Brunswick, Quebec, Manitoba, Saskatchewan, Alberta and Nunavut. The largest fall-off in new housing investment was yet again seen in Alberta, where a 30 per cent drop was that beleaguered province’s 13th consecutive year-over-year slide. The investment boosts in BC and Ontario were the main drivers of a 5.9 per cent year over year rise in housing investment across Canada, which totalled $4.5 billion in July, an increase of 2.1 per cent compared with June. By housing type, it was the same story as in BC and previous months, with higher investment in apartment-condominium construction across the nation increasing 13.1 per cent year over year to $1.59 billion. Row house and townhome construction also increased nationwide, up 8.8 per cent to $425 million. Single-family homes continued to see the highest total amount of construction investment in Canada, and maintained their resurgence after a slump in May, up 1.8 per cent year over year to $2.26 billion across the country as a whole. Still not invited to the investment party are duplexes, which continued to be unpopular with builders, with investment falling another 3.4 per cent year-over-year to $233 million across the whole country.

To see Statistics Canada’s interactive chart, click here.  

Courtesty of: Joannah Connolly

September 21, 2016