Canadians spend record amount on residential construction
CanWest News Service
Canadians invested a record $22.8 billion in residential construction in the second quarter of this year, up 7% from the same period in 2006, driven mainly by strong economic growth in Western Canada.
Increases in the values of both renovations and new housing were the biggest contributors to the jump in overall investments, Statistics Canada said Tuesday, while acquisition costs rose only moderately.
“The real estate sector has been positively affected by Western Canada’s dynamic economy, still attractive mortgage rates, appealing financing possibilities, strength in employment and growing disposable incomes,” Statistics Canada said.
“Strong immigration more evenly distributed across the country and inter-provincial migration have also been beneficial. Increased housing cost was important in the rise in investment figures, though it would have tended to limit demand.”
New residential construction spending increased 6.1% to $11 billion in the second quarter from a year earlier, the agency said. The biggest jump came in single-family investment, which rose 3.8% to $6.8 billion. Apartment and condominium construction increased 9.1% to $2.5 billion.
Spending on renovations also hit a record high, jumping 9.1% to $9.9 billion, the highest quarterly level on record and accounting for 43.5% of total residential investment in the second quarter, the agency said.
Meanwhile, acquisition costs increased just 2.2% to $1.9 billion, it said.
Statistics Canada said residential investment was strongest in Western Canada, representing about two-thirds of the increase in the second quarter. Saskatchewan, alone, saw a 28.3% surge to $479 million due to a jump in new construction.
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