Investment in residential construction continues its decline in June 2023
August 18, 2023 By Anthony Capkun
August 18, 2023 – Investment in non-residential construction edged down 0.2% to $5.9 billion. Meantime, investment in residential construction declined for the fourth straight month, falling 4.5% to $12.1 billion in June 2023.
Overall, investment in building construction fell 3.1% to $18.0 billion in June.
Statistics Canada believes the decrease in non-residential construction can be mainly attributed to widespread declines in Quebec (-3.1% to $1.3 billion).
Commercial construction was up 0.8% to $3.3 billion in June, while industrial (-1.4% to $1.2 billion) and institutional (-1.4% to $1.4 billion) construction both declined.
On the residential side, Ontario accounted for most of the drop (-5.8% to $5.1 billion).
Single-family home construction fell 5.7% to $6.2 billion in June, with declines seen in eight provinces.
Multi-unit construction declined for the eighth straight month, falling 3.1% to $5.9 billion in June, the lowest level since September 2021.
Second quarter 2023 analysis
Overall investment in building construction declined 5.2% to $55.7 billion in the second quarter, entirely due to a drop in residential construction (-8.2% to $37.9 billion). Non-residential construction was up 1.8% to $17.8 billion.
Investment in single-family homes fell 10.5% to $19.7 billion in the second quarter, which is the largest decline since the second quarter of 2020. Multi-unit construction declined for the third straight quarter, falling 5.7% to $18.2 billion in the second quarter of 2023.
Investment in non-residential construction rose 1.8% to $17.8 billion in the second quarter, the 10th consecutive quarterly increase.
Investment in industrial buildings rose 5.6% to $3.7 billion, while commercial construction increased 1.7% to $9.8 billion.
Institutional construction decreased 0.9% to $4.4 billion, with Quebec (-4.6% to $1.3 billion) accounting for most of the decline.
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