Municipalities issued more than $5 billion in building permits in June, Statistics Canada said today.

The total value of permits rose 1.5% from May, the government agency said.

Builders took out $3.2 billion in residential permits, up a half percentage point from May.

The value of non-residential permits rose 3.1% to $1.9 billion, which was 19.5% higher than the average monthly level last year.

In the residential sector, a decline in single-family homes was more than offset by an increase in multi-family residences. Low mortgage rates, good job prospects and robust consumer confidence were credited with driving the building boom.

In the non-residential sector, gains in the industrial and commercial components more than offset a drop in institutional permits.

So far this year, permits are well ahead of the record-setting pace set in 2004, StatsCan said. The cumulative value totalled $29.7 billion for the first half of 2005, 10.5% above the same six months last year. Residential permits were up 4.4% and non-residential permits up 22.7%.

Except for January, the value of permits issued for every month so far in 2005 has surpassed the average monthly level of $4.6 billion last year.

Among cities, the biggest June gains came in Calgary, Edmonton and Vancouver.

Provincially, the largest dollar gain in permits came in Quebec.

June’s increase in the value of permits in the non-residential sector followed two consecutive monthly declines after a record high of $2.2 billion recorded in March.

The industrial component showed strength, with permits up 14.5%, although the institutional sector fell 20.6% with fewer schools and medical buildings planned.

Commercial building plans recorded the biggest year-to-date gain, up 26.2%.

The agency said these figures reflect recent economic indicators, including lower office vacancy rates, good retail sales and strong corporate earnings.


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