Which asset class is impelling Canadian residential investment?

Much of the growth has been seen in two provinces

Which asset class is impelling Canadian residential investment?

Multi-unit construction propelled total residential investment up by 1.5% monthly to reach $13.1 billion in November 2021, according to Statistics Canada.

Investment in the multi-unit asset class grew by 2.4% to $6 billion, with Ontario (up 2.5%) and Quebec (up 3.3%) contributing to most of the national gain in November. Alberta and Saskatchewan also showed notable strength, StatCan said.

Investment in single-family homes ticked up by 0.7% to $7.1 billion, led by Ontario (up 1.7%).

Read more: Increases in construction costs slowing down – Statistics Canada

Meanwhile, non-residential construction investment posted a 0.6% increase in November to reach $4.9 billion.

Commercial investment enjoyed its fifth straight monthly increase, up by 0.6% to $2.7 billion. This was driven by gains in Ontario (up 1.1%), while Prince Edward Island and Alberta were the only provinces to report investment declines in this asset class.

Institutional investment rose by 1.4% to $1.4 billion, led by a 4.9% increase in Quebec that mostly offset declines reported in seven provinces, StatCan said. Industrial investment ticked down by 0.7% to $824 million, reflecting decreases in Ontario (down 1.6%) and Manitoba (down 6.8%).

Investment in overall building construction across residential and non-residential asset classes grew by 1.2% monthly to reach $18 billion. On a constant dollar basis, investment in building construction grew 0.5% to $12.3 billion, StatCan said.

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