Residential Construction Investment Falls for the First Time in Nine Months

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Despite six provinces reporting growth, residential construction investment declined 0.4%, with Quebec causing most of the drop. StatCan_eng cdnpoli housingmarket housing realestate realestatenews

from Ireland-based Research and Markets that calls for “modest” growth in Canada’s construction industry for the next year.According to StatCan, investment in building construction edged up 0.3% to $20.8B in June. Gains in the non-residential sector helped keep overall investment up. StatCan says that the majority of the strength for the month of June came from Ontario, reporting gains in all building components following a weak May resulting from ain the province.

Multi-unit construction investment fell 1.6% to $6.9B in June. Despite this decrease, investment in multi-unit construction has shown an overall upward trend since October 2021, says StatCan. Investment in single-family homes continued to show strength, having outpaced multi-unit construction since the COVID-19 pandemic downturn. It increased 0.7% to $8.6B in June, with gains in six provinces.

When looking back at the second quarter of the year, the total value of investment in building construction rose 3.3% to $62.3B — the third consecutive quarterly increase. Investment for residential buildings reached $46.4B, largely due to increased spending on multi-unit construction. The non-residential sector rose 2.6% to $15.8B.

 

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