New increases to Ontario’s

BUILDING PERMITS UP ACROSS CANADA

Between April and June 2022, more than $12 billion worth of non-residential building permits were issued. This is almost 25% higher than the same period a year ago. However, global supply chain constraints are limiting the availability of raw materials and Canada’s national unemployment rate continues to trend near all-times lows. As the Bank of Canada continues to tighten interest rates, a cooling Canadian economy might bring relief to the supply and demand imbalances.

Non-Residential Building Permits: • Close to $12.3 billion worth of non-residential building permits were issued April-June 2022. This is up almost 25% from the same three-month period a year ago, but down 1% from the three months prior. • The small decrease seen three months ago in the institutional component was because two hospital permits were issued in British Columbia and

Quebec. • Despite strong levels of growth in the first half of the year, activity could start to pull back with the rising-rate environment and continued uncertainty surrounding supply and rising costs of building material. • Global supply chain constraints are limiting the availability of raw materials, including cement,

causing issues in sourcing concrete for new construction. Unemployment Rate: • The national unemployment rate continues to trend near all-time lows as a shortage of qualified workers takes its toll in many sectors. • According to the Bank of Canada’s (BoC) Second

Quarter of 2022 Business Outlook Survey, businesses across the country are anticipating labour shortages will limit their sales growth. • Businesses link labour shortages to various factors, including aging populations, changes in workers job’s preferences, and stronger competition for workers. They also reported plans to raise wages to attract and retain workers, and keep up with the rising cost of living.

Part of a newsletter authored by George Douzenia, Mortgate Broker Source: November 2022 Newsletter