The total value of building permits issued in Canada increased by $821.3 million (+6.8%) in December, reaching $12.8 billion, according to the latest national construction data. Growth was driven primarily by the residential sector, which rose $533.5 million to $8.0 billion, while the non-residential sector contributed an additional $287.8 million, bringing its total to $4.8 billion.

On a constant dollar basis (2023=100), building permit values increased 6.6% month over month but were down 6.3% year over year, reflecting ongoing market adjustments.

December gains were largely fueled by multi-unit construction, which rose $653.2 million to $5.5 billion. Ontario led the increase (+$548.8 million), followed by Manitoba and Quebec, with six provinces and two territories contributing overall. Meanwhile, single-family construction declined by $119.7 million to $2.5 billion, with Ontario and Saskatchewan accounting for most of the drop.

In the fourth quarter of 2025, residential construction intentions climbed $2.4 billion to $24.0 billion, marking the strongest quarterly growth since late 2021. Multi-unit construction led the surge, increasing $2.3 billion to $16.3 billion, with Ontario—particularly the Toronto CMA—driving much of the activity. Quebec and Alberta also posted significant gains.

Despite quarterly strength, annual residential permit values declined by $1.0 billion to $86.6 billion in 2025, largely due to a 7.0% drop in single-family construction intentions—the lowest annual level on record. Conversely, multi-family permits rose to $57.0 billion, the second-highest level in the series. Notably, total housing units authorized reached a record 308,600 in 2025, driven by strong multi-unit approvals.

Non-residential permit values increased in December, supported by a $412.6 million rise in the institutional sector, led by Ontario, Quebec, and Alberta. However, declines in commercial and industrial components tempered overall growth.

For the fourth quarter, non-residential permits rose $1.3 billion to $14.7 billion, led by commercial and institutional gains. Ontario was the primary contributor to quarterly increases across commercial and industrial segments.

On an annual basis, non-residential permits declined $739.8 million to $52.9 billion in 2025—the first annual decrease since 2020. Quebec and Ontario led the decline, though Alberta and British Columbia recorded notable gains.

Industrial permit values fell significantly in 2025, down $3.4 billion to $9.4 billion after a record high in 2024. However, institutional construction rose sharply (+$1.9 billion), largely driven by hospital and long-term care facility projects in Alberta, British Columbia, Saskatchewan, and Ontario.

The latest building permit data highlights a continued shift toward multi-unit residential development amid weaker single-family activity. Institutional investment remains a bright spot, while industrial construction has moderated from peak levels. Regional differences—particularly strong growth in Ontario and Alberta—continue to shape Canada’s construction landscape heading into 2026.

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