Navigate Up
Sign In
Construction to slow in 2019

Construction to slow in 2019

Posted on: 11/6/2018 | Author: ATB Financial's Economics + Research Team

​​Albertans are familiar with the cacophony of pounding hammers, roaring saws, bellowing cement trucks and blaring earth movers. We know that’s the sound of money pouring into construction projects and jobs. But according to the latest read on building intentions, those noisy construction sites are set to quiet down a bit in 2019.

Statistics Canada reports that the total value of permits issued by Alberta municipalities in September dropped to just over $1.0 billion in September (seasonally adjusted). Over the last 12 months, total permits are down 7.2 per cent compared to the previous 12 months. Building permits are an excellent forecaster of future construction spending as any sort of project—residential or non-residential—requires a permit before construction can begin.

In September, permits for both residential and non-residential slipped from the previous month. Residential permits are down 6.9 per cent (last 12 months over the previous 12 months). This reflects a current oversupply of houses, particularly the glut of condos in Calgary. Non-residential projects are down 7.7 per cent, caused by an oversupply of commercial office buildings.

The drop in building permits suggests that construction activity will slow in 2019. That’s tough news for a province frustrated by slow economic growth. The good news is that fewer new homes and office buildings should help stem supply and stabilize prices.

Building Permits, graph​​

Share this article:

GlassdoorThis icon serves as a link to download the
eSSENTIAL Accessibility assistive technology app for individuals with physical disabilities. It is
featured as part of our commitment to diversity and inclusionDiversity and Inclusion

About ATB | Contact Us | Find a Branch or ABM | Current Rates | Privacy and Security | Legal | Code of Conduct | Site Map | Supplier Resources

©ATB Financial 2019. All rights reserved. ATB Financial is a trade name/registered trademark.

ATB Financial