In March, Canada witnessed a significant decline in the total value of building permits, dropping 11.7% to $10.5 billion according to Statistics Canada. This blog explores the underlying trends in both residential and non-residential sectors, detailing the shifts and variances across different regions and components.

March’s data highlights a notable contraction in construction intentions. Non-residential building permits plummeted by 16.7% to $4.0 billion, driven by sharp decreases in industrial and institutional construction. Conversely, the commercial sector saw a modest increase of 5.8% to $2.2 billion, somewhat cushioning the broader decline in the non-residential sector.

The residential building permits also faced a downturn, decreasing by 8.3% to $6.5 billion. Ontario was particularly impacted, with a 13.7% reduction in permit values for both single-family and multi-family dwellings. Despite the overall dip, certain provinces like Quebec and Prince Edward Island exhibited growth, indicating a mixed regional performance within the residential sector.

• Quebec’s residential sector grew by 7.3%, adding $90.1 million.
• Prince Edward Island saw a significant surge of 70.4%, increasing by $14.3 million.
• Saskatchewan and Newfoundland also reported gains, underscoring the uneven geographical distribution of construction activity.

The first quarter of 2024 shows a rebound with building permits totaling $33.4 billion, a 3.7% increase from the previous quarter. This recovery is primarily fueled by gains in the commercial and industrial sectors in British Columbia, highlighting a potential shift towards more robust construction activity in the upcoming months.

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