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In December, the total value of building permits issued in Canada increased $821.3 million (6.8 percent) to $12.8 billion. The increase was led by the residential sector ($533.5 million) and supported by the non-residential sector ($287.8 million). The total value of building permits issued in December grew 6.6 percent from the previous month and was down 6.3 percent on a year-over-year basis.
Multi-unit permits drive residential sector growth
In December, residential construction intentions increased $533.5 million, bringing the total value to $8 billion. Gains recorded in the multi-unit component ($653.2 million to $5.5 billion) were tempered by a decline in the single-family component ($119.7 million to $2.5 billion).
In December, the multi-unit component gains were largely attributed to Ontario ($548.8 million), Manitoba ($236.9 million) and Quebec ($130.7 million), with a total of six provinces and two territories contributing to the increase.
Meanwhile, the decline in the single-family component was driven by Ontario ($75.4 million) and Saskatchewan ($32.6 million). Overall, six provinces and one territory contributed to the decline in this component.
Quarterly review: multi-unit residential sector increases in fourth quarter
In the fourth quarter, the total value of building permits increased $3.7 billion to $38.7 billion, marking the largest quarterly increase since the fourth quarter of 2021. The residential sector was the primary contributor to the growth in the fourth quarter of 2025.
Residential construction intentions rose $2.4 billion to $24 billion in the fourth quarter, with the multi-unit component ($2.3 billion to $16.3 billion) leading the growth.
In the fourth quarter, Ontario (up $994.2 million) led the multi-unit component’s growth, with the Toronto census metropolitan area (up $665.7 million) contributing the most to the province’s increase for the second quarter in a row. Quebec (up $486.6 million) and Alberta (up $445.1 million) also contributed to the component’s increase, along with six other provinces and one territory.
The single-family component’s moderate growth (0.5 percent) in the fourth quarter was also led by Ontario ($66.7 million), followed by Alberta ($36.2 million). Meanwhile, declines in four provinces and two territories, led by Quebec ($63.7 million) and Nova Scotia ($29.2 million), tempered the overall gains.
Annual review of 2025: Weak single family and industrial construction intentions drive declines in residential and non-residential permit values
Year over year, the total value of building permits rose $3.3 billion to $149.7 billion in 2025. The total value of building permits declined 1.3 percent from 2024 to $139.6 billion. The residential sector decreased $1 billion to $86.6 billion in 2025. This decline was driven by single-family construction intentions, falling seven percent to $29.6 billion, the lowest annual level in the series. Conversely, the multi-family component increased $1.2 billion to $57 billion in 2025, the second-highest level in the series.
Meanwhile, the number of units authorized for construction was up 19,100 to 308,600 in 2025, a record high. Gains in authorized multi-unit dwellings (22,600) were moderated by declines in intentions to build single-family homes (3,500).