Canadian building permits fell 4.6% in November led by non-residential projects, particularly in Toronto and Calgary, while housing permits continued to grow.
The total value of permits issued by municipalities fell to $5.94 billion, Statistics Canada said today in Ottawa. Permits for non-residential construction dropped 22% to $2.14 billion, and residential permits rose 9.1% to $3.79 billion, the fourth straight gain.
The decline follows a revised 20% increase in October to a 13-month high, as builders took advantage of the lowest mortgage rates in half a century. Bank of Canada Governor Mark Carney has said consumers should be cautious about taking on too much debt, and Deputy Governor Timothy Lane is scheduled to give a speech at about 2 p.m. New York time on housing and the recovery.
"No other sector of the economy has been as highly affected by economic stimulus as housing," said Phil Soper, president of Brookfield Real Estate Services Fund, in a Jan. 7 report.
The Bank of Canada cut its key lending rate to a record low 0.25% in April and Prime Minister Stephen Harper has offered temporary tax credits for home renovations.
Home construction has responded to the stimulus, with permits growing 38% over the 12 months ending in November. Non-residential permits have increased just 3.4% in that time.
Single-family home permits rose for a ninth month, by 2.9% to $2.5 billion, Statistics Canada said. Multiple-family permits rose 23% to $1.3 billion.
In November, permits for industrial projects plunged 58% and institutional permits dropped 26%, while commercial permits rose 3.9%.
By city, permits in Toronto fell 8.9% to $963 million, and dropped 47% in Calgary to $312 million. Vancouver had one of the biggest urban gains, with permits jumping 40% to $484 million.
Economists predicted a 3.3% drop in building permits based on the median of 12 estimates taken by Bloomberg News.
