Residential construction investment edged lower in August

A split between building types

The single-family component fell 1.3%, while multi-unit investment rose 0.6%. Across residential and non-residential buildings together, total investment edged up 0.1% to $23.5 billion.

Figures are seasonally adjusted and in current dollars unless stated otherwise. Total investment fell 0.1% after adjusting for price changes. Estimates can be revised.

BC illustrates why the components matter: single-family investment fell $46.5 million from July while multi-unit spending increased $65.2 million. Ontario's multi-unit investment declined $79.4 million over the same period.

What construction spending measures

Statistics Canada's methodology measures spending on building construction and excludes land values. It combines permit information with other data, including CMHC's residential starts and completions, to estimate work carried out over each project's duration. A month's estimate includes work on projects begun earlier as well as new starts.

Our reading for a buyer is that spending, housing supply and an individual purchase price answer different questions. A higher multi-unit total does not establish how many homes are ready to occupy in a particular neighbourhood. A lower single-family total does not establish the discount a builder will offer.

Bring the discussion back to the property

For someone considering a new build in Edmonton, Vancouver or Toronto, the useful follow-up is a project-specific conversation. Confirm the proposed home, expected completion timing and financing conditions with the professionals handling the purchase. National or provincial investment totals cannot resolve those details.

FCAC's pre-approval guidance explains that lenders assess your finances and later check the property against their requirements. Pre-approval does not guarantee final financing. It also recommends asking how long a rate commitment lasts and whether pre-approval can be extended.

• Which property documents and conditions does the lender still need?
• How does the financing timeline fit the builder's expected completion date?
• What would need to be reviewed if the completion date changes?

Our pre-approval playbook can help organize that discussion with a broker. For a separate measure of construction activity, see our September housing-starts briefing. Keep each report's month and unit of measurement attached to its figures when comparing them.