Gains in the residential sector (+9.0% to $10.4 billion) led investment for the month, as the non-residential sector continued to moderate the overall rate of investment in building construction (+1.5% to $4.4 billion). On a constant dollar basis (2012=100), investment in building construction also rose 6.7% to $12.5 billion.
Investment in residential building construction
The increase in total residential investment in January was broad based, with every province and territory increasing except Nunavut (-14.6%). Gains for the month were led by Ontario (+$277 million), Quebec (+$236 million) and Alberta (+$115 million).
In the residential sector, investment in single-dwelling construction broke from the downward trend set over the last three months of 2018, up 10.6% in January to $5.4 billion. At the same time, investment in multiple dwelling construction (which includes doubles, row homes, and condo and rental apartments) continued to build its upward momentum, rising 7.2% to $5.0 billion.
Residential investment in focus: Montréal, Toronto and Vancouver
On an unadjusted basis, Canada's three largest municipalities posted strong year-over-year growth in total residential investment (Montréal +26.1%, Vancouver +18.1%, Toronto +8.6%) in January.
This growth was primarily concentrated in the multiple dwelling component, as builders focused investment in the construction of new condo and rental apartments (Toronto +$140 million, Vancouver +$139 million, Montréal +$79 million).
At the same time, while each of the major metropolitan centres saw lower investment in the construction of new single family homes (Toronto -$140 million, Vancouver -$63 million, Montréal -$6 million), the renovation market mostly offset that weakness (Toronto +$126 million, Montréal +$91 million, Vancouver +$18 million).
Investment in non-residential building construction
Gains in the non-residential sector in January were concentrated primarily in Quebec (+$36 million) and British Columbia (+$23 million). Investment in the remaining provinces and territories rose by $8 million to $2.8 billion.
By component, the gain in January was attributable to a 2.8% increase in investment in commercial buildings, reaching a record high $2.5 billion for the monthly series. The industrial component edged up 0.5% to $831 million, which was offset by a corresponding small decline in institutional investment (-0.7% to $1.0 billion).
Non-residential investment in focus: Montréal, Toronto and Vancouver
By contrast, the picture for non-residential investment was more varied than in the residential sector. On an unadjusted basis, total non-residential investment in Montréal rose 10.4% year over year in January to $547 million, on gains in the commercial (+$33 million) and industrial (+$17 million) components.
Toronto saw a significant decline in the non-residential sector (-17.8%), with all three components down in January compared with the same month a year earlier. The downward movement in investment was mainly the result of a $130 million decline in institutional spending due to maturing hospital projects (Mackenzie Vaughan and Mount Sinai), followed by declines in industrial (-$28 million) and commercial (-$28 million) investment.
On the West Coast, non-residential investment in Vancouver rose 22.9% on strength in the commercial component (+$90 million), which was partially offset by small declines in institutional (-$8 million) and industrial (-$7 million) investment.
Investment in building construction up in January 2019
Total investment in building construction rebounded in January, up 6.7% from December to $14.8 billion.
Electric Site research project results to be discussed at Quarry Tech!Uwe Müller, chief project manager for the Electric Site at…
Machines in Construction 4.0 holds founding meeting at bauma“With the founding of the MiC 4.0 working group, we…
Wajax CFO resignsWajax Corporation has announced the resignation of Darren Yaworsky, senior…
CDE launches Intelligent Plant with AI technologyIndustry innovator CDE - a leading manufacturer of wet processing…
April 25, 2019
SC&RA free webinar
May 22, 2019
Canada North Resources Expo
May 24-25, 2019
CCA Spring Board Meeting
May 27-28, 2019
CRAC Conference 2019
June 5-8, 2019
CCA Fall Board Meeting
September 10-12, 2019