Statistics Canada reports that Canada’s building permit landscape witnessed a sharp downturn in June, with the total value of permits plummeting by 13.9% to $9.9 billion. This decline extends the downward trend that began in May, marking a challenging period for the construction industry across the nation. The reduction in permit values was widespread, affecting 11 out of 13 provinces and territories, with both the residential and non-residential sectors experiencing notable setbacks.

The residential sector saw a significant 11.5% drop in the total value of building permits, settling at $6.5 billion in June. The most substantial decline occurred in multi-unit construction intentions, which fell by 19.8%—a staggering $937.1 million loss. Ontario and British Columbia were the hardest hit, with Ontario experiencing its largest monthly decrease since December 2023. Despite these challenges, single-family home construction intentions showed resilience, rising by 4.0% to $2.6 billion.

Over the past year, Canadian municipalities have authorized 263,400 dwelling units, with 20,400 of these approvals occurring in June alone.

The non-residential sector also saw a sharp decline, with permit values dropping by 18.1% to $3.5 billion. The industrial component experienced the steepest fall, plunging by 42.6% following a strong performance in May. Commercial construction also declined by 15.6%, while the institutional component saw a modest gain of 1.0%.

Despite the June downturn, the second quarter of 2024 saw an overall increase in building permit values, rising by 2.1% to $34.6 billion. This growth was largely driven by the residential sector, which grew by 6.9% to $22.2 billion. Ontario led the charge, particularly in the multi-unit segment, which achieved a national record of $14.4 billion in the second quarter.

However, the non-residential sector tempered this growth with a 5.6% decline, as all three components—industrial, commercial, and institutional—experienced reductions. The industrial sector was particularly affected, with a 14.8% decrease in permit values.

As Canada continues to navigate the complexities of the construction industry, these trends underscore the challenges and opportunities that lie ahead.

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