In May, the total value of building permits in Canada fell to $11.7 billion, marking a 12.2% decrease from the record high of $13.4 billion in April, according to Statistics Canada. This significant decline was largely driven by a sharp drop in British Columbia.

British Columbia experienced a dramatic 50.7% decrease in the total value of building permits in May after reaching a record high in April. Without British Columbia’s figures, the total value of building permits across other provinces and territories saw a modest decline of 0.7% in May.

On a constant dollar basis (2017=100), the total value of building permits declined by 12.5% in May, following a substantial 23.0% increase in April. The residential sector was particularly affected, with the value of residential building permits dropping 16.3% to $7.1 billion. British Columbia’s significant decrease of 53.7% (-$1.1 billion) was a key factor in this decline, attributed to the record high multi-unit permits issued in April.

Excluding British Columbia, residential construction intentions fell by 3.8% in May. Ontario saw a 7.9% decline (-$261.2 million), Alberta dropped by 10.9% (-$122.4 million), and the Maritime provinces collectively fell by 4.5% (-$17.7 million).

Across Canada, 22,700 dwelling units were authorized in May, contributing to a cumulative total of 267,600 units since June 2023.

The value of non-residential permits decreased by 5.0% to $4.6 billion in May 2024. This decline was driven by a reduction in institutional permits (-18.0%; -$236.4 million) and commercial permits (-7.4%; -$194.1 million), which outweighed the growth in industrial permits (+20.6%; +$187.2 million).

Despite increases in non-residential permit values in six provinces and two territories, the significant decline in British Columbia (-44.1%; -$420.3 million) heavily impacted the sector. Excluding British Columbia, non-residential construction intentions increased by 4.5% month over month.

New Brunswick saw record high levels in May for the commercial component of building permits at $65.3 million, and the third highest level for the industrial component at $30.4 million, driven by the issuance of permits for large new construction projects.

The sharp decline in building permits in May highlights the volatility in the construction sector, particularly influenced by significant regional variations such as those seen in British Columbia. Monitoring these trends is crucial for stakeholders in the construction industry to navigate and respond to changing market conditions.

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