Investment in Building Construction Decreases in September 2025
Table of Contents
Released: 2025-11-19
Total investment in building construction amounted to $22.4 billion in september, a decrease of 1.1%. The residential sector saw a decline of 1.7%,while non-residential investment remained largely unchanged. Year over year, however, investment in building construction grew by 6.0% in September.
On a constant dollar basis (2023=100), the total value of investment in building construction decreased 1.4% from the previous month to $20.7 billion,but was up 2.3% year over year.
Chart 1: Investment in building construction, seasonally adjusted
!Chart 1: Investment in building construction, seasonally adjusted
Residential Investment in Building Construction Declines
Investment in residential building construction declined $263.1 million to $15.6 billion in September. This decrease was primarily driven by the multi-unit component (-2.5%), followed by the single-family component (-0.6%).
Investment in multi-unit construction decreased $218.5 million to $8.4 billion in September. This decline was led by Ontario (-$116.7 million), Alberta (-$72.0 million), and British Columbia (-$32.7 million). Seven provinces and two territories contributed to this overall decrease.
In the single-family home construction sector, investment edged down $44.6 million to $7.3 billion in September. Alberta (-$46.2 million) and Ontario (-$42.0 million) were the primary contributors to this decrease, partially offset by increases in Quebec (+$22.5 million) and Saskatchewan (+$19.2 million).
Construction Investment Growth in Q3 2023
Investment in building construction saw a positive trend in the third quarter of 2023, increasing by 0.6% (+$392.2 million) to reach $67.7 billion. this represents a meaningful 7.5% growth compared to the same period in the previous year. These figures indicate continued, albeit moderate, expansion in the construction sector.
Residential Sector Performance
The residential sector was a key driver of this growth, experiencing a 0.9% increase to $47.5 billion in investment.This growth was primarily fueled by a robust 5.0% increase in single-family home construction. However, the multi-unit sector saw a decline of 2.3%, suggesting a potential cooling in the apartment and condominium market.
Single-Family vs. Multi-Unit Dynamics
The divergence between single-family and multi-unit construction highlights shifting market preferences. Increased demand for single-family homes may be driven by factors like changing lifestyle preferences post-pandemic, a desire for more space, and affordability challenges in the multi-unit market. The decline in multi-unit investment could be attributed to rising interest rates, increased construction costs, or an oversupply of units in certain areas.
Non-Residential construction Trends
While overall construction investment rose, the non-residential sector experienced a slight dip of 0.1%, totaling $20.3 billion. This decline was largely due to a 4.9% decrease in industrial construction. However, positive growth in the institutional (2.3%) and commercial (0.4%) components partially offset this downturn.
Sector-Specific insights
- Industrial: The decline in industrial construction may reflect slowing economic growth, reduced demand for warehouse space, or a pause in new factory construction.
- Institutional: growth in institutional construction (schools, hospitals, goverment buildings) suggests continued public investment in essential infrastructure.
- Commercial: The modest increase in commercial construction indicates a cautious optimism in the office and retail sectors.
Key Takeaways
- Overall construction investment increased by 0.6% in Q3 2023, reaching $67.7 billion.
- Residential construction led the growth, driven by a 5.0% increase in single-family homes.
- Non-residential construction saw a slight decline, primarily due to a decrease in industrial investment.
- The contrasting performance of single-family and multi-unit residential construction indicates evolving market dynamics.
For more detailed data and data, please refer to Statistics canada’s Construction Statistics.
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