Even though all the development, innovation, and scientific and technological advances were made by man, he could not reduce the growing dependency of the economy on the construction of buildings. This case became evident in the case of Canada where the building permits showed a massive increase in number. This was a positive influence on the construction industry which resulted due to demand for new housing and increased government spending.

The February hike in permit prices According to the statistical reports, the building intentions showed a drastic increase all over Canada. The value of permits showed a shocking amount of $12.4 billion in the month of February which is a 21% increase from what it was in January. Experts found high inflation rates in the country to be a major contributor to this current situation. Since the Canadian building intentions are a combination of a desire for residential and non-residential buildings it is necessary to understand the difference between the two

What are residential building intentions?

Throughout the years the demand for residential building construction has always been high due to the continuous increase in the human population and awareness among people to acquire a place of residence to retire to. But in February this already popular type of construction showed an increase of $7.8 billion which is 9.8% higher than January. Some explain this surge as the result of single-family home building desires. Most people aspire to move out of big cities to build their place of residence to enjoy some peace and quiet.

What are non-residential building intentions?

Non-residential buildings include commercial and institutional structures which were not left out in the latest trend of demand hike. The permits for this category of buildings reached a whopping $4.9 billion in February which when compared to the month of January is a 43.2%increase. This is more surprising that a hike in the price of residential permits as such a boost was not witnessed in this section for many years. An example of a non-residential boom was seen in BC and Quebec where hospital permits saw a boost to $1.9 billion. Though it was not a sustainable boom, it had its benefits, nonetheless.

Importance of permit

The building permit values are the early indication of construction activities going on in a country. For Canada, it is based on 2,400 municipalities that represent about 95% of the nation’s population. An important thing to note is that the issuance of a permit does not ensure that construction will take place.

Conclusion

Although an increase in building intentions has major positive effects on the economy, like boosting the construction industry, we need to ensure the level of inflation or any other negative output that caused this hike does not overpower the benefit of this result.