In July, Canada experienced a significant boost in the construction sector, as the total value of building permits jumped by 22.1%, reaching $12.4 billion according to Statistics Canada. This surge marks a strong rebound following two months of declines and reflects growth across both the residential and non-residential sectors. On a constant dollar basis, the value of building permits increased by 22.9% compared to the previous month, showcasing a robust recovery in the construction industry.

The residential sector experienced a notable increase of 16.7% in building permits, totaling $7.6 billion in July. The primary driver of this growth was the surge in multi-unit construction permits, which saw a 29.3% rise, contributing an additional $1.1 billion. In contrast, single-family construction permits slightly declined by 1.9%, representing a $50.3 million drop.

In terms of multi-unit construction, British Columbia led the way with a remarkable 152.1% increase (+$766.8 million), largely driven by projects in the City of Richmond. Alberta (+33.1%; +$141.0 million) and Ontario (+7.7%; +$122.6 million) also saw significant contributions to the growth of multi-unit permits. Overall, July authorized 20,700 new dwellings in multi-unit buildings and 4,100 new single-family homes across Canada.

The non-residential sector also posted strong growth, with building permits rising by 31.8% to reach $4.8 billion in July. This expansion was evident across all components, including commercial (+18.4% to $2.2 billion), industrial (+98.6% to $1.3 billion), and institutional (+14.8% to $1.3 billion).

Ontario and British Columbia led the way in non-residential construction intentions. Ontario’s non-residential sector grew by 23.8% (+$2.2 billion), driven by the industrial component, which saw a record-breaking 99.3% growth (+$338.0 million). A major contributing factor was the expansion of a tire manufacturing plant in Greater Napanee. Similarly, British Columbia experienced a 99.2% increase in non-residential permits (+$869.1 million), with notable growth in industrial (+349.2%), institutional (+383.0%), and commercial (+30.8%) sectors.

Canada’s construction industry saw a significant recovery in July, led by impressive gains in both residential and non-residential sectors. The surge in multi-unit residential projects, particularly in British Columbia and Ontario, underscores the growing demand for housing. On the non-residential side, large-scale industrial and commercial projects are driving the growth, positioning Canada’s construction sector for a continued upward trend.

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