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October 18, 2007 |
Unlike the situation in the US, the housing boom in Canada
shows no signs of slowing down. According to figures released
in early October by Statistics Canada, the value of building
permits surpassed the $6 billion mark for the fourth consecutive
month in August. The $6.3 billion worth of permits municipalities
issued was up 1.4 per cent from $6.2 billion in July, indicating
a busy fall in the construction industry and, by extension,
for producers of architectural coatings as well.
In the residential sector, the value of single-family permits
hit its second highest monthly level on record in August.
This was offset by a decline in intentions for multi-family
dwellings. In the end, the value of housing permits was virtually
unchanged from July, at a strong $3.9 billion. In Alberta,
for example, there was a 4.1 per cent overall decrease in
housing permits to $808 million, led by a 22.4 per cent decrease
in multi-family housing that was almost offset by a gain
in single-family permits. The impact of the oil boom in the
west could also be felt in Saskatchewan where there was a
12.1 per cent increase in the value of single-family permits.
According to StatsCan, factors that continue to positively
affect housing demand include strength in employment, growth
in disposable income, low inflation, tight apartment vacancy
rates in several urban centres and attractive financing options.
In the non-residential sector, the 4.3 per cent increase
in permits continues a trend that began in early 2006. The
increase was distributed in different sectors in various
areas of the country. In Ontario, for example, there were
large increases in institutional permits for projects like
schools, nursing homes and hospitals, while demand for manufacturing
buildings fell. Meanwhile, demand for commercial permits
across the country was up 9.9 per cent from July, led almost
exclusively by the need in the three westernmost provinces
for buildings such as hotels, office buildings and shopping
malls. Non-residential construction overall continues to
be driven by strong corporate profits, demand for office
space, healthy retail and wholesale sectors and the thriving
economy in Western Canada.
www.statcan.ca
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