Canada

Canadian Residential Investment Is Seeing Growth Accelerate

Canadian investment in construction of residential real estate has returned. Statistics Canada (Stat Can) data shows investment in residential building increased in December. The level of growth isn’t as high as it was just a few years ago. However, growth has been accelerating since the end of the election.

Canadian Residential Investment Rises To $97 Billion In 2019

Canada’s residential investment is up large across urban areas. There was $8.19 billion pumped into residential investment in December, up 9.98% compared to a year before. That pushed the total invested to $97.01 billion in the 12-months ending in December, up 3.77% from a year before. This past December was much higher than last year, which was actually negative. The 12-month rolling sum is seeing smaller growth than a year before, but it’s still growth.

Canadian Residential Investment Growth

The 12-month percent change for investment in residential building investment, and the 12-month rolling average.

Source: Stat Can, Better Dwelling.

Toronto Sees Highest Residential Investment Growth In Over A Year

Toronto represented a significant chunk of Canada’s urban residential investment. The region saw $2.16 billion in residential investment in December, up 15.80% from a year before. The total investment for 2019 hit $25.74%, up 5.66% compared to the previous year. The rise for the month is the highest for any single month, since July 2017. The 12-month rolling sum is the largest increase since May 2018. To put it bluntly, there was substantial growth returned to this market.

Canadian Residential Investment Growth

The rate of growth for the 12-month rolling sum of residential investment, for Canada’s urban aggregate, Montreal, Toronto, and Vancouver.

Source: Stat Can, Better Dwelling.

Vancouver Has A Slow December, But Is Still Seeing Overall Growth

Vancouver had a slower year end, but that doesn’t tell the whole story of its residential investment. There was just $1.07 billion in residential investment made in December, down 8.84% from a year before. Over the past 12-months ending in December, there’s been $14.33 billion, an increase of 7.55% from a year before. Despite December being a slow month, there is actually significant growth. Something that is obfuscated by looking at just the month.

Montreal’s Residential Investment Is The New Vancouver

Montreal continues to outpace Vancouver for residential investment dollars. There was $1.22 billion invested in December, up 5.79% from a year before. Over the past 12 months, the region saw $14.89 billion in residential investment, up 7.73% compared to a year before. The 12-month rolling sum for Montreal began growing faster than Vancouver, starting this past October.

Canadian investment in residential building was beginning to slow, but reversed course late last year. Looking at the 12-month rolling sum, we can see a sharp acceleration in October once again. We’re not seeing growth at the same level as it was just a couple years ago, but it’s definitely picking up.

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6 Comments

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  • Lorrie 7 months ago

    Now you know why the developer bail out, I mean first-time home buyer incentive, was created for no apparent reason. The recovery happens on the same month it goes live.

    • Marc 7 months ago

      I thought there was no takers on the program? Like $50 million or something?

  • Old Nick 7 months ago

    The BC condo/strata markets are TOAST if the Insurance issue are not resolved. I would be willing to bet that if it is not you will see project after project postponed or cancelled altogether.

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