Investment in building construction declined 0.6 to $20.9 billion in September, with most of the weakness coming from Quebec (-3.4 per cent). The residential sector decreased 1.3 per cent to $15.4 billion. Conversely, the non-residential sector rose 1.6 per cent to $5.4 billion.

On a constant dollar basis (2012=100), investment in building construction continued its downward trend since the last peak recorded in February 2022, decreasing 1.5 per cent to $12.3 billion.

Investment in building construction, seasonally adjusted

Quebec drags down residential sector

Investment in the residential building construction decreased 1.3% to $15.4 billion in September. Residential construction investment has seen little growth since February, with both single-family and multi-family construction remaining relatively stable since February.

Single-family home investment declined 1.3% to $8.5 billion in September and has stayed around this value since May.

Investment in multi-unit construction was down 1.4% to $7.0 billion. Quebec (-5.6%) caused most of the fall, with its fourth consecutive decline in this component following the peak in May.

Investment in residential building construction, September 2022

Investment in residential building construction, seasonally adjusted

Ontario rebounds with strong month in non-residential construction

Investment in non-residential construction increased 1.6% to $5.4 billion in September. Overall, eight provinces reported gains, with Ontario (+2.0%) leading the way in each component.

Industrial construction investment advanced 2.9% for the month and is up 24.0% year over year. This was the 10th consecutive monthly increase in this component.

Commercial construction investment rose 1.1% to $3.0 billion in September. Overall, eight provinces posted gains, and two reported declines.

Institutional construction investment was up 1.6% to $1.4 billion. Ontario (+2.5%) led the way, with the construction of a new elementary school in Hamilton and a post-secondary school in Toronto contributing to the gains.

Investment in non-residential building construction, September 2022

Third quarter of 2022 in review

The total value of investment in building construction advanced 1.0% to $62.8 billion in the third quarter, the fourth consecutive quarterly increase. Investment in residential buildings increased 0.7% due to multi-unit construction. The non-residential sector increased 2.1% to $16.1 billion.

Single-family home investment edged down 0.2% to $25.5 billion in the third quarter. The multi-unit component increased for the fourth quarter in a row, rising 1.8%, with most of the growth coming from British Columbia (+21.9%).

Investment in non-residential construction was up 13.4% compared with the third quarter of 2021. Industrial construction investment had its largest quarterly growth since the third quarter of 2017, up 6.8% to $3.0 billion. Commercial construction investment increased 2.6% to $9.0 billion, the sixth consecutive quarterly increase. Institutional construction investment declined 2.1% to $4.1 billion, with most of the decline coming from Quebec (-7.7%).