The total value of building permits in Canada for December 2023 plummeted to $9.2 billion, marking a sharp decline of 14% compared to December 2022, according to the latest report from Statistics Canada. This decrease represents the lowest monthly level recorded since October 2020, signaling a notable contraction in construction activity.
The decline in building permits was observed across both residential and non-residential sectors. Residential permits experienced a substantial drop of 16% compared to December 2022, primarily attributed to a significant decrease in multi-unit construction intentions. Additionally, single-family dwelling permits saw a modest increase during the same period.
In December 2023, the total number of dwelling units witnessed a significant downturn of 22% compared to November 2023 and a decrease of 16% compared to December 2022. Specifically, the number of total dwelling units decreased from 21,690 units in November 2023 to 16,918 units in December 2023.
On a year-over-year basis, the total value of building permits for the entire year of 2023 decreased by 14% compared to 2022.
