The total value of Canadian building permits declined 1.7% in May 2026, falling by $215 million to $12.4 billion, according to the latest data released by Statistics Canada. The decrease was driven by weaker non-residential construction, while growth in the residential sector helped offset some of the decline.

On a constant dollar basis (2023=100), total building permit values decreased 1.6% month over month and were 7.0% lower than May 2025.

The value of non-residential building permits fell 6.1% to $4.7 billion, primarily due to a sharp decline in industrial construction, which dropped $341 million to $861.3 million.

Ontario recorded the largest decrease in industrial construction intentions, followed by Quebec and Alberta. Overall, eight provinces and one territory contributed to the national decline.

Institutional construction also weakened, largely because of lower permit values in Ontario and Quebec. However, strong institutional activity in British Columbia helped reduce the overall impact.

Commercial construction provided one of the few bright spots, increasing by $81.4 million to $2.4 billion, led by gains in British Columbia, Ontario, and Newfoundland and Labrador.

While non-residential activity slowed, the residential construction sector posted a 1.2% increase, reaching $7.7 billion in May.

Growth was driven by the multi-unit housing segment, which increased $161.9 million to $5.1 billion. British Columbia and Ontario led the gains, with the Vancouver and Toronto metropolitan areas recording the largest increases in construction intentions.

Single-family housing, however, declined by $70.7 million to $2.6 billion, with Quebec, Manitoba, and Alberta experiencing the largest decreases.

Across Canada, municipalities authorized approximately 20,200 multi-unit dwellings and 3,900 single-family homes in May. Combined residential approvals were down just 0.6% from the previous month.

Over the 12-month period ending in May 2026, a total of 301,400 housing units were authorized, compared with 303,500 during the previous 12 months, indicating relatively stable residential construction activity despite ongoing market challenges.

May’s building permit data highlights a mixed outlook for Canada’s construction industry. Continued strength in multi-unit residential development is helping support housing supply, while weaker industrial and institutional activity is weighing on overall non-residential construction. As economic conditions evolve, future building permit activity will remain a key indicator of construction investment and development trends across Canada.

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