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Growth in industrial sector construction intentions were not enough to prevent a significant slowdown in building permit values compared to May.
Building permits, by segment, in June of 2025. (Source: Statistics Canada, Table 34-10-0292-01, Building permits, by type of building and type of work.)
Canada’s industrial construction sector was the only segment to post monthly building permit growth in June, according to the latest report on building permits from Statistics Canada. Overall, the total value of building permits issued in Canada decreased by $1.2 billion, or nine per cent, to come in at $12 billion for the month. Despite the significant drop from May, permit values were up by more than 11 per cent compared to June of 2024.
After driving growth in May, Ontario’s institutional component led the decline in construction intentions in June as the value of non-residential building permits decreased by $863.8 million, or 15 per cent, to land at $4.9 billion in June. Ontario’s institutional component receded from $1.9 billion in May to just $538 million in June. Despite this decrease, institutional construction intentions remained relatively strong at the national level, coming in at $1.7 billion on growth in Alberta, which posted a $455.4 million gain over its totals in May. Those gains were driven mainly by hospital construction intentions in the Red Deer census metropolitan area.
Commercial construction intentions across Canada declined by $87.4 million in June, coming in at $2.14 billion as Quebec, British Columbia and Nova Scotia all posting sizable reductions. A rise of $139.6 million in Ontario partially offset the declines with new permits being issued for warehouses, indoor recreational facilities and retail and wholesale outlets.
The industrial component was a bright spot in this latest report, increasing by $192.7 million to reach $1.1 billion in June, with growth being led by activities in Quebec and Ontario.
Residential construction intentions fell by 4.3 per cent, coming in $318 million shy of May to sit at $7.1 billion for June. British Columbia’s multi-family component led the decline after leading the sector gains in May.
Nationally, the multi-family component receded by $144.5 million to $4.6 billion. Losses in British Columbia were tempered by a $261.1 million growth in Ontario’s monthly totals. In June, the single-family component declined by $173.5 million to $2.4 billion. Ontario and Alberta led with declines at the provincial level.
Looking at quarterly results, the total value of building permits in the second quarter was down $1.9 billion as the values over the three-month span came in at $36.7 billion. This was the first quarterly reduction after five consecutive quarterly increases.
Residential construction intentions declined 15 per cent in the second quarter, coming in at $21.7 billion. A $3-billion dip in the multi-family component drove the decline, fuelled by weaker results in Ontario and British Columbia. Ontario’s decrease was mainly attributed to the Toronto CMA, which experienced a second consecutive quarterly decline. The Toronto CMA recorded its lowest constant dollar value since the series started in 2018, despite having significantly contributed to the growth in the fourth quarter of 2024, reported Statistics Canada. The Vancouver CMA drove the decline in British Columbia in the second quarter of 2025, after leading growth in the national multi-family component in the first quarter.
In the second quarter, the single-family component decreased by $874.3 million to $7.7 billion, led by a decline of $645.1 million in Ontario and a drop of $207.1 million in Alberta.
A total of 305,400 single-family and multi-family units were authorized for construction from the third quarter of 2024 to the second quarter of 2025, an increase of 37,900 units, or just over 14 per cent, compared with the 267,500 units authorized over the same period one year earlier.
Non-residential construction intentions reached a record high of $15 billion in the second quarter after posting an increase of $2 billion. Growth was driven by Ontario, largely due to its institutional component.
Ontario and Alberta drove gains in the national institutional component to a quarterly series high of $5.6 billion as hospital construction intentions in St. Catharines–Niagara and Red Deer factored in favourably.
Canada’s industrial component was also on the rise, increasing $698.9 million to $2.9 billion in the second quarter. Growth was led by Ontario and Quebec.
Meanwhile, the commercial component declined by $147.3 million to $6.5 billion. Decreases were recorded primarily in British Columbia and, to a lesser extent, in Alberta and New Brunswick. Those declines were tempered by gains in Ontario.