Statistics Canada reports that total investment in building construction declined by $503.2 million (-2.1%) to $23.0 billion in February, primarily driven by weakness in the residential sector. Despite this monthly drop, overall investment increased 1.8% year over year, signaling moderate long-term stability in Canada’s construction market.

The residential sector saw the most significant impact, falling 3.3% to $16.0 billion. This decline was largely attributed to a sharp decrease in multi-unit residential construction, which dropped 6.9% to $8.5 billion. Ontario led this downturn, accounting for a substantial portion of the national decline, alongside decreases across several provinces and territories. The slowdown in multi-unit construction reflects ongoing challenges such as higher financing costs, project delays, and shifting housing demand.

In contrast, single-family home construction provided a partial offset, rising 1.1% to $7.4 billion. Growth was strongest in Quebec, New Brunswick, and Manitoba, although declines in Ontario and Saskatchewan limited overall gains. This mixed performance highlights regional differences in housing demand and construction activity across Canada.

The non-residential sector demonstrated resilience, increasing 0.7% to $7.0 billion in February. Growth was recorded across all major components, including institutional, industrial, and commercial construction. Institutional investment rose 0.9% to $2.2 billion, supported by gains in Alberta, Ontario, and British Columbia. Meanwhile, industrial construction posted a modest 0.7% increase to $1.3 billion, marking its first monthly gain since early 2025, with Alberta leading the recovery.

Commercial construction also contributed to the sector’s growth, rising 0.6% to $3.6 billion. Alberta again played a key role, reflecting continued investment in retail, office, and mixed-use developments.

On a constant dollar basis (2023=100), total construction investment declined 2.3% month over month and was down 1.5% year over year, indicating that inflation-adjusted activity remains under pressure.

Overall, the February data highlights a shifting construction landscape in Canada. While residential construction—particularly multi-unit housing—faces ongoing headwinds, non-residential investment is helping stabilize the sector. Industry stakeholders should closely monitor regional trends, housing demand, and economic conditions as they shape construction activity in the months ahead.

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