Issue 18-10: Non-residential Building Investment

January 16, 2018

Investment in non-residential building construction in B.C. increased by 2.3% (seasonally adjusted) in the fourth quarter of 2017. The increase was led by spending on new buildings in the industrial (+13.4%), and institutional (-+3.9%) sectors, which offset a very modest decline in commercial buildings investment (‑0.1%).

Among B.C.’s Census Metropolitan Areas only Kelowna (‑4.7%) saw a decrease in non-residential investment in the fourth quarter of 2017. Non-residential building construction activity in Vancouver (+3.1% or $29.3 million) was second only to Toronto, which posted the largest increase in the quarter (+5.4% or $150.7 million).

Nationally, non-residential construction expenditures grew 1.6% in the fourth quarter. Investment in new non-residential building projects was up in five provinces, led by Ontario (+4.4%). Notable increases were observed in Newfoundland and Labrador (+22.5%) and New Brunswick (+71%).

Annual Non-residential Investment 2017

Total investment in non-residential building construction in British Columbia fell by 2.4% or $150.5 million in 2017 compared to 2016. The decrease was led by reduced spending on commercial building construction (‑2.6% or $103.2 million).

Spending in non-residential building construction in Canada increased by 1.2% in 2017 compared to the previous year. The increase was due to higher investment in institutional (+2.6% or $380.0 million) and industrial (+3.5% or $257.5 million) building construction, as commercial investment was unchanged from 2016.

Data Source: Statistics Canada