Ontario Construction News staff writer
Investment in Canada’s building construction set a record high in February for the second month in a row, with continued strength in the residential sector.
According to a report by Statistics Canada, total investment in building construction jumped by 4.2 per cent to a record $16.8 billion in February, surpassing the $16.1 billion record in January 2021.
Most investment gains were the result of price increases for building materials, which have skyrocketed amid the pandemic.
According to Stats Canada, the largest increase was in residential construction, as investments reached $12.3 billion.
Single-family homes being built in census metropolitan areas (CMAs) continued to drive the growth; however, record highs were set both in and outside CMAs. Investment outside CMAs increased 37.6% compared with February 2020, the largest year-over-year increase this component has reported since comparable data were available, back to 2011.
The strength of single-family home investment in recent months may be partly attributable to an increased demand for more living space as Canada approaches the end of the first year of the COVID-19 pandemic.
Also, the demand for single-family homes— especially in Canada’s census metropolitan areas, has been a significant driver, as Canadians with remote work arrangements continue to migrate to more spacious suburban and rural areas, the report stated.
Multi-unit construction increased 1.6 per cent to $5.7 billion – the tenth increase in a row, with ongoing construction projects in the city of Toronto.
Non-residential construction investment rose by just 0.2 per cent to $4.5 billion and institutional construction investment edged up by 0.6 per cent.
For the fifth consecutive month, commercial building construction investment remained unchanged at $2.5 billion, with a gain in Ontario offset by drops in seven provinces.