A building permit is an official approval issued by a local municipality that allows for the construction or alteration of a building on a property.
- Compared with Q1 2019, the total value of building permits issued in Peel in Q1 2020 fell by 28.3 per cent.
- A fall in the value of residential building permits was the source of the decline.
- Lower value of building permits (building intentions) suggest that building activities in Peel will likely weaken in the short-to-medium-term.
- The onset of the COVID-19 pandemic and measures put in place to reduce the spread will likely contribute to the expected weakness.
The total value of building permits issued in Q1 2020 was $897 million, a decline of 28.3 per cent when compared with Q1 2019.
Permits by Sub-Sector
The decline in the value of total building permits issued in Peel in Q1 2020 reflected differing changes among its two sub-sectors as follows:
- Residential: down 53.6 per cent to $423 million, the lowest in four years; and
- Non-residential: up by 43 per cent to $473 million, the highest since Peel-specific data became available in 2000.
Permits by Municipality
The total value of building permits issued in Q1 2020 decreased in the Cities of Mississauga and Brampton and increased in the Town of Caledon.
The changes relative to Q1 2019, were as follows:
- City of Brampton: $357 million, down by 12.2 per cent;
- Town of Caledon: $228 million, up by 516.6 per cent.
- City of Mississauga: $311 million, down by 61.4 per cent; and
Commercial building activity increased substantially in Caledon in Q1 2020 to contribute to the relatively strong increase observed.
Given the strong increase recorded in Caledon, the city recorded a substantial increase in its share of building permits from 2.96 per cent in Q1 2019 to 25.4 per cent in Q1 2020.
Differing performances among Peel’s municipalities resulted in significant shifts in the municipal shares of the total building permits issued between Q1 2018 and Q1 2019, as follows:
- City of Brampton: up 7.3 percentage points to 39.9 per cent;
- City of Mississauga: down 29.8 percentage points to 34.7 per cent; and
- The Town of Caledon: up 22.5 percentage points to 25.4 per cent.
Building intentions in Mississauga tend to show wide fluctuations, given that the city is fully built, and therefore building projects tend to be large and lumpy.