New Housing Investment YOY Rises 4.1% in May

Bar chart of investment in new housing construction, May 2016-May 2017

July 28, 2017

New housing construction investment totalled $4.4 billion in May, up 4.1% from May 2016. This increase was mostly explained by higher investment in Ontario and, to a lesser extent, in British Columbia and Manitoba. Of the four provinces that posted a decline, Quebec’s decrease was the largest.

The 11.2% drop in Quebec was due primarily to a strike in the construction industry in the last week of the month. All types of housing construction declined in this province except row housing, which saw a slight increase.

In Ontario, new housing construction investment totalled $1.8 billion in May, a 7.1% year-over-year increase. This gain was largely attributable to higher spending on single-family dwellings (+$81.5 million). However, apartment construction spending in the province fell by $14.4 million.

Spending in British Columbia totalled $995 million, up 7.3% year over year. This increase was attributable to higher construction investment in apartments (+$69.2 million) and, to a lesser extent, row houses (+$7.1 million).

In Manitoba, new housing construction investment rose 36.9% year over year to $144.6 million. This growth was led by higher investment in single-family dwellings. Manitoba was the lone province to post increases for all types of dwellings.

Increases for all types of dwellings

Nationally, construction spending increased for all types of dwellings. Increased investment in single-family dwellings (+$77.6 million) accounted for 44.6% of the national gain.

Higher investment in apartment buildings was still mostly attributable to spending in British Columbia. The largest decreases for this type of dwelling were in Alberta and Ontario.

Source: Statistics Canada, www.statcan.gc.ca/daily-quotidien/170721/dq170721c-eng.htm 

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