Despite government promises to stimulate Canada’s dismal housing market, the number of building permits issued in April saw one of the largest declines since 2020.
Building permits dropped 6.6 per cent in April and fell by 16.4 per cent annually, according to the latest data from Statistics Canada.
The total value of permits issued across Canada decreased by $829.6 million in April, bringing the overall figure to $11.7 billion.
The data also marked a 14 per cent drop compared to last April.
British Columbia saw the largest decline in permits, while Ontario received the most.
While homebuilding in every sector showed declines, residential construction was hit the hardest, declining by 11.6 per cent, particularly in Vancouver.
Multi-family units fell 20.5 per cent year-over-year, with Vancouver accounting for the bulk of that drop.
Single-family homes fared better, declining only 1.5 per cent annually in April.
“The decrease in single-family construction intentions in April was most pronounced in Alberta (-$37.4 million) and was partially offset by Quebec (+$26.6 million),” said Statistics Canada.
“Across Canada, 21,400 multi-family dwellings and 4,200 single-family dwellings were authorized for construction in April, marking a 6.5 per cent decrease in the total number of units authorized compared with the previous month.”
Non-residential buildings dropped 13 per cent from last year, revealing more signs of a sluggish economy.
Still, permits in that sector rose by 3.3 per cent to $4.3 billion in April compared to the previous month across all provinces, with the exception of government-funded institutional projects in Ontario.
The province saw a jump of 20.8 per cent in non-residential intentions, bringing Ontario’s total to $2 billion in April.
“Meanwhile, the decline in British Columbia’s non-residential construction intentions were widespread, with losses being mainly in the commercial (-$164.5 million) and institutional (-$158.2 million) components,” said Statistics Canada.
The drop in permits issued reflects other indicators of a stilted market, as housing sales have slowed as well, and consumer spending is in decline.