Investment in the Residential Sector Declines in January 2024

April 17, 2024

Investment in building construction declined 0.9% to $19.7 billion in January. The residential sector declined 1.4% to $13.6 billion, while investment in the non-residential sector edged up 0.2% to $6.1 billion.

On a constant dollar basis (2017=100), investment in building construction fell 0.9% to $12.1 billion in January.

Investment in the residential sector declines

Investment in the Residential Sector Declines in January 2024

Investment in residential building construction declined by $194 million (-1.4%) to $13.6 billion in January. The monthly movement in January was led by a $228 million decline in Ontario (-4.1% to $5.4 billion), the largest contributor to the net monthly change. This decline was partially offset by increases in five provinces, led by Quebec (+$53 million to $2.5 billion).

Nationally, investment in detached single-family homes increased 2.1% to $6.7 billion in January, with eight provinces reporting gains for this component. Multi-unit family investment declined 4.5% to $6.9 billion in January, driven by declines in Ontario as the pace of new construction starts in the province slowed in January 2024 compared with earlier in 2023.

Non-residential sector edges higher

Investment in the non-residential sector edged up in January (+0.2%), increasing for the third consecutive month to reach a record high of $6.1 billion. Gains in institutional (+$32.3 million to $1.7 billion) and industrial (+$7.3 million to $1.3 billion) investments were largely offset by declines in commercial investment (-$26.2 million to $3.1 billion).

The decline in commercial investment for January represents the seventh consecutive monthly decline, with seven provinces contributing to the negative movement.

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