Total investment in building
Investment in building construction continued its upward trend from October 2021, rising 0.8% to $21 billion in July. Both the residential (+1.0% to $15.7 billion) and non-residential (+0.1% to $5.3 billion) sectors showed increases.
On a constant dollar basis (2012=100), investment in building construction increased 1.4% to $12.8 billion.
Investment in building construction, seasonally adjusted
The non-residential sector remains unchanged
Nonresidential construction investment rose 0.1% to $5.3 billion in July.
Business investment rose 0.6% to $3 billion in the month, cooling off after posting strong gains in June. Notable component growth came primarily from British Columbia (+3.5%), stemming from multiple projects in Vancouver.
At the subcomponent level, the new construction for Commerce and Services and Warehouses were the ones that contributed the most to growth. In July, construction in Commerce and Services has surpassed the pre-COVID-19 pandemic levels, with substantial growth in the last 12 months. Warehouses have also seen considerable growth, up 42.0% unadjusted since March 2021, coinciding with strong e-commerce growth and the need for large e-commerce companies to store products locally for fast delivery . In contrast, investment in new office buildings, after a temporary uptick in June 2020, has trended downward ever since, as the work-from-home model became more prevalent and the number of Vacant offices in Canada continued to rise.
Investment in new commercial buildings, not seasonally adjusted
Investment in the industrial component advanced 2.2% to $1.0 billion in July, with gains in seven provinces. Ontario accounted for the bulk of the component’s gains in the month, continuing its sizeable growth from December 2021.
Investment in institutional construction decreased 2.3% to $1.4 billion in July, the component’s biggest drop since April 2020.
Investment in non-residential building, July 2022
Lower earnings in the residential sector
Investment in the construction of residential buildings advanced 1.0% to 15.7 billion dollars in July.
Investment in single-family homes rose 0.3% to $8.6 billion and has been relatively flat for the five months ending in July.
Multi-unit construction investment rose 1.8% to $7.1 billion in the month, with apartment projects in Ontario and British Columbia contributing significantly to gains.
Unadjusted, new construction of both single-family and multi-unit homes has shown notable growth in the past few months, rising 3.9% year-over-year in July.
Investment in residential building, July 2022
Investment in construction of residential buildings, seasonally adjusted
For more information on housing, visit the housing statistics portal.
Note to readers
Data are subject to revision based on late responses, methodological changes, and classification updates. Unadjusted data has been revised for the previous month. Seasonally adjusted data has been revised for the previous three months.
Data presented in this release is seasonally adjusted to current dollar values, unless otherwise noted. Using seasonally adjusted data allows for month-to-month and quarter-to-quarter comparisons by removing the effects of seasonal variations. For information on seasonal adjustment, see Seasonally adjusted data – Frequently asked questions.
Monthly estimates in constant dollars are calculated using quarterly deflators of the Building Construction Price Index (table 18-10-0135-01). Generally, the first two months of a quarter use the price level of the previous quarter and the data is revised when the new quarterly price index is available.
Detailed data on investment activity by building type and job type is now available in the unadjusted current dollar series.
The Commerce and Services subcomponent includes buildings such as retail and wholesale outlets, retail complexes, and motor vehicle showrooms. More detailed information can be found in the Integrated Metadatabase at Types of Building Structure – 2.2.1 – Commerce and services.
Building investment data for August will be released on October 17.
Statistics Canada has a “Housing Market Indicators” panel. This web application provides access to key indicators of the Canadian real estate market, by province and census metropolitan area. These indicators are automatically updated with new information from monthly releases, giving users access to the latest data.
For more information or questions about the concepts, methods, or data quality in this release, please contact us (toll-free). 1-800-263-1136; 514-283-8300; [email protected]) or Media Relations ([email protected]).