Canada Building Permits Jump 20.5% in April

By Robb M. Stewart

OTTAWA--The value of Canadian building permits soared in April, buoyed by record high levels of multi-unit residential construction plans and a sharp rise in intentions in the country's western-most province.

The total value of building permits rose 20.5% from the month before to a seasonally adjusted 12.84 billion Canadian dollars, the equivalent of US$9.33 billion, Statistics Canada said Tuesday.

The increase was much stronger than the 5% rise expected for the month by economists, according to TD Securities, and marks a rebound after a downwardly revised 12.3% drop in March. On a constant-dollar basis, the overall monthly value of building permits climbed 20.7% in April to the highest level since last June.

On a year-over-year basis, the nominal value of permits issued in April was up 27.9%.

Statistics Canada said growth was seen for the month in all components of the data.

Building permits provide an early indication of construction activity in Canada and are based on a survey of 2,400 municipalities, representing 95% of the country's population. The issuance of a permit doesn't guarantee that construction is imminent.

Housing starts slipped by 1% during April, and the six-month moving average decreased 2.2%, data released by Canada Mortgage and Housing Corp. showed.

Statistics Canada said construction intentions in the residential sector were up strongly from the previous month, with permits rising 21.0% to C$8.04 billion. Intentions to build multifamily dwellings were up 32.6%, while intentions for single-family homes increased 2.4%.

Across Canada, 4,300 new single-family homes were authorized in April and 22,600 new multi-unit dwellings were approved through building permits, an all-time high. British Columbia led the growth in multi-family plans, with a record 7,200 dwellings authorized for the month.

Still, the data agency said that despite a strong month the 12-month cumulative total of 267,700 units authorized from last May through April saw little change, increasing by just 200 units compared the same period the year before.

Permits for nonresidential buildings jumped 19.6% from the month before to $4.80 billion, with growth in industrial, commercial and institutional construction intentions, the agency said. Growth in the non-residential sector was also driven by British Columbia.

Write to Robb M. Stewart at robb.stewart@wsj.com

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June 11, 2024 09:13 ET (13:13 GMT)

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