Canadian municipalities issued a record high value of building permits last year for the second year in a row as the demand for new dwellings soared.

The value of building permits hit $55.4 billion, 9.1% more than the previous high of $50.8 billion set in 2003, Statistics Canada said today.

The agency said the annual level of permits has increased for nine straight years.

“Overall construction intentions reached new peaks in every province except Prince Edward Island and Saskatchewan,” the government agency said.

Housing permits totalled a record $36.7 billion, up 14.7% from the previous peak in 2003.

“Municipalities authorized the construction of 240,640 new dwelling units last year, up 18,095 from 2003. It was the highest number since 1987 when 248,700 new units were approved.

“In contrast, non-residential construction intentions last year were just shy of the all-time high in 2003, a result of sluggishness at the beginning of the year.”

Non-residential building permits totalled $18.7 billion, down 0.4% from 2003.

The agency said the year ended on a strong note in December as the value of permits hit $5.1 billion, up 1.6% from November for the third consecutive monthly gain.

The December level was the second highest month on record, surpassed only by the $5.4 billion level last June.

December housing permits were up 8.2% from November to $3.4 billion.

“In the non-residential sector, the value of permits declined 9.4% to $1.7 billion as the industrial and institutional components retreated significantly.”

The agency’s building permits survey covers 2,350 municipalities representing 95% of the population.