Residential Sector Breaks Two-Month Dip,
Advanced by Multifamily Investment
Construction activity experienced uptick. The total value of building permits rose 8.6 per cent monthly in February, indicating strong development intentions for residential and non-residential properties. In the residential sector, while the long-term trend continues on a downward trajectory, it is beginning to flatten as the total value of permits increased 7.9 per cent month-over-month. This rise in the residential sector stemmed from an upward movement in multifamily permits. For non-residential properties, the value of permits advanced 9.8 per cent monthly, with the long-term trend continuing up. While the total value of permits has witnessed a steady decline since borrowing costs began to rise, this healthy gain could be an early indication that some investors are emerging from the sidelines, as it is becoming more likely that interest rates have peaked.