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Talking Points
In May, the total value of building permits issued in Canada fell by $215 million, or 1.7%, to $12.4 billion, primarily due to a 6.1% decline in the non-residential sector. Residential construction intentions increased by 1.2% to $7.7 billion, driven by multi-unit dwellings.
- The multi-unit component rose by $161.9 million to $5.1 billion, led by British Columbia and Ontario.
- Single-family dwelling permits decreased by $70.7 million to $2.6 billion, with Quebec seeing the largest drop.
- A total of 20,200 multi-unit and 3,900 single-family dwellings were authorized in May, marking a 0.6% decrease from April.
This decline in building permits highlights ongoing challenges in the construction sector, reflecting shifting market dynamics that could impact housing availability and economic growth across Canada.
In May, the total value of building permits issued in Canada decreased $215 million (down 1.7 percent) to reach $12.4 billion. The decline in construction intentions was due to the non-residential sector (down 6.1 percent) and tempered by the residential sector (up 1.2 percent). The total value of building permits issued in May decreased 1.6 percent from the previous month and was down seven percent on a year-over-year basis.
Residential construction intentions rose $91.1 million to $7.7 billion in May. The increase in the multi-unit component (up $161.9 million to $5.1 billion) was partially offset by a decline in the single-family component (down $70.7 million to $2.6 billion).
In May, the growth in the multi-unit component was led by British Columbia (up $304.4 million) and supported by Ontario (up $235.0 million). The largest increases were recorded in the Vancouver (up $216.0 million) and Toronto (up $129.0 million) census metropolitan areas. Declines in Quebec (down $272.6 million) and Nova Scotia (down $79.2 million) moderated the gains.
The decrease in the single-family component in May was primarily attributable to Quebec (down $65.7 million), followed by Manitoba (down $19.5 million) and Alberta (down $13.8 million).
Across Canada, 20,200 multi-unit dwellings and 3,900 single-family dwellings (not seasonally adjusted) were authorized in May, down 0.6 percent from the previous month. From June 2025 to May 2026, the total number of multi-unit and single-family dwellings authorized was 301,400, down from 303,500 during the same period one year earlier.