Market lethargy in Ontario was largely to blame, according to the national statistics agency
Investment in the residential sector was largely unchanged in May, ending a streak of robust market growth that started in September 2021, according to Statistics Canada.
Overall building construction investment ticked down by 0.2% to $20.6 billion in May, with the widespread strikes among Ontario’s unionized construction workers cited as a major cause.
“These strikes caused significant delays in numerous residential and non-residential construction projects throughout the province,” StatCan said. “Excluding Ontario, investment increased 1.1% at the national level.”
On a constant dollar basis (with 2012 set at 100), building construction investment declined by 0.2% to 13 billion in May.
Read more: CMHC outlines housing market forecast for the near future
Residential construction investment remained generally static at $15.4 billion, but removing Ontario from the equation shows that the residential sector is on a continuous upward trajectory, increasing by 1.3% in May.
“Multi-unit construction continued to climb, increasing 3.4% to $7 billion, with six provinces posting gains, led by Quebec (+10.0%),” StatCan said.
“Investment in single family homes declined 2.5%, ending its seven-month growth streak. Overall, six provinces reported growth in May, which was offset by declines in four provinces, with Ontario and Quebec causing most of the fall.”
