, Canada is seeing a notable drop in building permits.yesterday, the value of Canada’s building permits fell by the most on record in September — a loud and clear indication of the trying economic times. According to the latest StatCan data, the total value of building permits for the month plummeted a dramatic 17.5% from August, to $10.2B. Quarterly, the country’s building permits were down 6.3% between July and September — to $33.7B — after three consecutive quarters of increases.
Meanwhile construction intentions for single-family homes dropped 7.7%, with notable declines in Ontario, Manitoba and Alberta. Furthermore, the non-residential sector saw permits decline 21.5% to $3.18B, with both the institutional and commercial components falling by 37.2% and 11.5%, respectively.
The drop in permits is likely a reflection of fewer people looking to get into the market at present time, due to interest rates that render the possibility of a mortgage a pipe dream to countless Canadians. Last week, the Bank of Canada raised its overnight lending rate by 50 points to 3.75% and has indicated that we could expect even more hikes. Erin Nicole DavisErin Nicole Davis is a born and raised Toronto writer with a passion for the city and its urban affairs and culture.