Building permits lower in August
Construction intentions in Alberta pulled back by 8.5%
By Rob Roach, ATB Economics 5 October 2022 1 min read
The seasonally adjusted value of building permits issued by Alberta municipalities* in August was 8.5% ($126.1 million) lower than the month before.
Residential permit value decreased by 4.0% (39.7 million) while the value of non-residential permits contracted by 17.3% ($86.4 million).
Calgary and Edmonton were, however, on different paths in August.
The value of building permits in Calgary fell by 28.5% ($217.5 million) compared to a month-over-month rise in Edmonton of 20.9% ($95.3 million).
Zooming out from the monthly fluctuations and removing inflation, year-to-date permit value in constant dollars was 4.5% lower than in 2021 and 0.3% below where things stood in the province eight months into 2019 (i.e., before the disruptive effects of the pandemic).
Exactly how higher interest rates will interact with other factors to affect construction intentions in the months ahead remains to be seen, but higher borrowing costs will work to slow activity.
*Statistics Canada’s Building Permits Survey covers all Canadian municipalities that issue permits.
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