yolowire.com – Canada saw a significant increase in the total value of building permits in April, up 20.5 percent. The sharp spike was due to construction intentions in the residential sector, which increased 21.0 percent, while the non-residential sector rose 19.6 percent. By region, British Columbia posted a record high, leading the monthly increases in both residential and non-residential sectors in Canada. Vancouver, the province’s largest city, witnessed an even more dramatic rise of 139.7 percent in permits.
The rise in residential building permits was driven by record high levels in the multi-unit component, which increased 32.6 percent, while the single-family home component edged up just 2.4 percent. British Columbia again led the gains, up 75.2 percent.
In April, 4,300 new single-family homes were authorized and 22,600 new multi-unit dwellings were also approved through building permits, an all-time high. British Columbia’s record 7,200 new multi-unit dwellings authorized in April was the main driver.
Despite a strong month, the 12-month cumulative total of 267,700 units authorized from May 2023 to April 2024 saw little change compared to the 267,500 units authorized from May 2022 to April 2023.
The monthly BuildingPermits Survey collects data on the value of permits issued by Canadian municipalities for both residential and non-residential buildings. While the long-term effects remain to be seen, this surge in building permits suggests a potential increase in housing supply in the coming months and years. However, data is seasonal, and the year over year data was little changed. Interest rate cuts by the Bank of Canada could offer some relief to the current housing shortage and potentially help stabilize or even reduce housing prices.