June sees increased investment in Canadian building projects

Posted on August 26, 2024   |  

In June, investment in Canadian building construction increased by 2.8% to $21.4 billion, following a 0.8% rise in May.

When adjusted for inflation (2017=100), June's building construction investment grew by 2.6% to $13.0 billion, showing a 6.8% increase from the previous year.

This growth was partially influenced by April's record high of $13.4 billion in building permits, which typically drives future investment levels.

Residential construction investment rose by 3.8% in June, reaching $15.0 billion, with gains noted in 9 provinces and 2 territories.

Investment in multi-unit residential buildings increased by 6.0% to $8.1 billion, while single-family home investment went up by 1.4% to $6.9 billion after two months of decline.

Nonresidential construction investment slightly increased by 0.4% to $6.4 billion in June, with commercial construction seeing a $27.2 million rise to $3.2 billion, while industrial and institutional investments remained stable.

In Q2, building construction investment totaled $62.8 billion, a 0.4% increase from Q1, continuing a growth trend for the fourth consecutive quarter, and up 7.2% from the previous year.

Residential construction investment in Q2 increased by 0.4% to $43.7 billion, driven by a 5.1% rise in multi-unit projects, although single-family home investment decreased by 4.3%. 

Nonresidential investment also grew by 0.3% to $19.1 billion, with gains in institutional construction balancing out declines in industrial and commercial sectors.