Construction intentions in Alberta rebounded in May
But were sluggish compared to last year
By Rob Roach, ATB Economics 11 July 2023 1 min read
The seasonally-adjusted value of building permits issued by Alberta municipalities increased by 19% in May. Four-fifths of the improvement was due to a large jump in commercial project permits.
The rise more than made up for the 14% drop recorded in April, but the (unadjusted) year-to-date (YTD) tally was down by 7% compared to the same five months in 2022.
Despite sizzling population growth in Alberta, YTD residential construction intentions were 13% lower than last year with higher borrowing costs weighing on new home construction.
YTD non-residential construction permits, meanwhile, posted a 6% increase.
Construction intentions in Alberta’s two largest metro areas have been on very different tracks so far this year.
Total YTD permit value in the Calgary CMA was up by 14% with both residential (+8%) and non-residential (+28%) permits above where things stood five months into 2022.
In the Edmonton CMA, total YTD permit value was down by 24% with both residential (-32%) and non-residential (-2%) permits lower than over the same period last year.
Softer construction intentions were the norm across the country with total YTD permit value down by 10% nationally. Ontario was the only province to post growth (+2%), but still saw its YTD residential permit value drop by 8%.
Answer to the previous trivia question: Edmonton’s Klondike Days exhibition was renamed Capital Ex in 2006 and again in 2012 when it was dubbed K-Days.
Today’s trivia question: How many teams are there in the Canadian Football League?