B.C. posted Canada's largest increase in residential-construction investment between the first quarter of 2008 and the same period a year earlier, Statistics Canada says.

Residential investment in B.C. rose $697.9 million, or 21.2 per cent, to $3.98 billion over this period, the federal agency said yesterday.

Behind B.C. came Alberta, up 9.1 per cent to $3.52 billion, and Ontario, up four per cent to $6.86 billion. Quebec, Prince Edward Island, the Yukon, Northwest Territories and Nunavut saw declines in investment.

Nationally, residential investment hit $19.78 billion in the first quarter of 2008, up 7.5 per cent from the same period last year, StatsCan said.

"The favourable job situation, growth in disposable income, flexible financing options and the strength of the economy in Western Canada continued to support the demand for housing," StatsCan said.

Residential construction investment includes new-home construction, renovations and acquisition costs -- the value of services associated with the sale of new dwellings.

New-housing investment, stoked by apartment and condo building, rose 8.8 per cent to $9.7 billion during this period.

Spending on renovations jumped 7.2 per cent to $8.4 billion from the first quarter last year.

Reno spending accounted for 42.4 per cent of total residential-construction investment.

Acquisition costs climbed 1.3 per cent to $1.7 billion.

Residential-construction investment increases depend on house prices rising. The New Housing Price Index climbed by six per cent between the first quarter of this year and the same period in 2007.

© The Vancouver Province 2008