New home building slump continues.
September 7, 2005 - The decline in Ottawa's home building sector extended into July, as builders continued to cut back on the number of new homes under construction.
Figures from Statistics Canada show a 45 per cent increase in the total value of building permits issued in July, but all the increase came in the non-residential sector. The value of permits for single-family homes rose 12.1 per cent but was more than offset by a 54.8-per-cent drop in permits for multi-family housing.
All the action was in the non-residential sector, where the value of permits jumped 260 per cent compared to June.
So far this year, residential construction intentions are off by 30.9 per cent from the same period of 2004, while non-residential construction is up 59 per cent. Major projects such as the Royal Ottawa Hospital, renovations at the Ottawa Hospital, and work at Carleton University and the University of Ottawa are keeping the industry busy.
The total value of permits issued in Ottawa so far this year is down 2.9 per cent thanks to the decline in the residential market.
Across Canada, Statscan says the overall value of building permits fell for the third time in four months in July, as industrial and commercial intentions declined, and the value of housing permits showed only a modest increase. Municipalities issued $4.9 billion worth of building permits, down three per cent from June.
The decline came in the wake of a one-per-cent increase in June. Still, the agency says July's level remained 5.2 per cent higher than the average monthly level in 2004.
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