Canadian construction intentions cooled in July as the value of building permits issued fell 11.3% from June.

Statistics Canada said municipalities issued $6.2 billion worth of permits in July, compared with a record $6.9 billion the month before.

There were drops in both the residential and non-residential sectors.

The value of home permits fell 6.3% to $3.8 billion, with declines in both the single-family and multiple-family components. The report said, however, the demand for housing remains high, driven in part by strong employment, growth in disposable income, tight apartment vacancy rates in several centres and attractive financing options.

Municipalities issued $2.4 billion worth of permits for single-family homes, a 3.1% decline from June, but still the third-highest value on record.

The value of multi-family permits dropped 11.1% to $1.5 billion, the first decline in five months.

StatsCan said the high price tag associated with the purchase of single-family dwellings has contributed to an increasing shift in housing demand towards multi-family units. So far this year, 51.4% of the new units approved have been multi-family.

In the non-residential sector, permits fell 18.6% to $2.3 billion.

The value of institutional and commercial permits decreased, while industrial permits rose to their second-highest value in just over a year.

Despite the decline in the non-residential sector, July’s level was still nearly 10 per above the average monthly level in 2006. Furthermore, the value of non-residential permits has been generally on an upward trend since the beginning of 2006.

In the commercial component, the value of permits totalled $1.2 billion, down 29.4% from June. Lower construction intentions were spread across a wide variety of buildings, such as office buildings, hotels, warehouses, shopping malls and retail stores. Intentions fell in seven provinces.

July’s level was the lowest in five months. Despite the decline, the value of commercial permits has been on an upward trend since October 2005.

In the institutional sector, the value of permits dropped 16.9% to $592 million following gains of 14.6% in June and 78.6% in May. Lower construction intentions in educational buildings and nursing homes contributed to this decline.

The value of permits in the industrial sector rose 23.8% to $503 million, based mainly on strong construction intentions for manufacturing buildings in Ontario and Alberta.

The overall value of permits increased in only three provinces: Newfoundland and Labrador, Prince Edward Island and New Brunswick.