According to the latest data from Statistics Canada, the total value of building permits issued across Canada fell by 1.2% (-$139.2 million) in August, reaching $11.6 billion. On a constant dollar basis (2023=100), this represents a 1.5% monthly decline and a 5.9% year-over-year decrease, reflecting ongoing uncertainty in construction activity nationwide.

The bulk of the monthly downturn was led by the residential sector, which saw a 2.4% drop (-$173.8 million) to $7.0 billion. Ontario and Alberta contributed most to the decline, falling by $432.8 million and $311.1 million, respectively. However, these losses were partially offset by gains in British Columbia (+$331.4 million) and Quebec (+$155.5 million).

Single-family permits dropped $112.3 million to $2.5 billion, again driven by significant declines in Ontario (-$131.0 million) and Alberta (-$59.6 million). Modest gains in Quebec (+$36.8 million) and Manitoba (+$23.2 million) helped soften the overall drop.

Multi-family residential permits declined $61.5 million, totaling $4.5 billion. Ontario (-$301.8 million) and Alberta (-$251.5 million) were again the biggest contributors to the drop. Notably, British Columbia rebounded strongly (+$329.7 million)—with $300.3 million of that concentrated in the Vancouver CMA—while Quebec added another $118.7 million in gains.

In total, 20,500 multi-family and 4,100 single-family dwellings were authorized in August, a 0.9% decrease from July.

On the non-residential side, permit values increased by 0.8% (+$34.6 million) to $4.6 billion. The institutional component drove growth with a $211.3 million increase, led by Ontario (+$235.3 million) for hospital construction in Toronto CMA, and British Columbia (+$78.2 million) for government buildings in Vancouver. Nova Scotia tempered gains with a $96.4 million decline after a July spike in long-term care permits.

• Commercial permits fell by $134.0 million, led by Ontario (-$308.2 million) after two months of gains. British Columbia helped ease the impact with a $190.4 million increase.
• Industrial permits decreased $42.6 million, with losses in eight provinces. Ontario led the decline (-$57.6 million), while Quebec offset some of the drop with a $90.8 million increase.

August’s mixed results highlight the shifting dynamics of Canada’s construction sector. While residential activity continues to cool, select regions—particularly British Columbia and Quebec—are driving growth in both residential and institutional construction. The data underscores the need for region-specific strategies as Canada navigates ongoing housing demands and infrastructure development.

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