Statistics Canada reports that in September 2025, the total value of building permits in Canada rose by 4.5% (+$504.8 million) to reach $11.7 billion, driven by gains in both residential (+4.8%) and non-residential (+4.0%) sectors. On a constant dollar basis (2023=100), this marks a 4.2% monthly increase, signaling a short-term recovery in construction intentions.
Residential permits rose by $335.3 million to $7.3 billion in September. Growth was led by the multi-family component (+$252.2 million), boosted by strong activity in Alberta (+$219.9 million) and Quebec (+$146.7 million). However, British Columbia (-$186.3 million) tempered gains.
The single-family component also increased by $83.1 million, primarily driven by Ontario (+$114.0 million), while declines in five provinces and two territories slightly offset the increase.
Non-residential permits climbed to $4.4 billion in September, up $169.6 million. Gains in the commercial (+$205.4 million) and industrial (+$104.8 million) sectors were partly offset by a decline in the institutional component (-$140.6 million).
Alberta led the commercial increase (+$109.9 million), while Quebec led in industrial growth (+$67.1 million). Institutional declines were largely due to sharp drops in Alberta (-$75.6M), Quebec (-$75.5M), Manitoba, and Ontario.
Despite September’s uptick, the third quarter (Q3) saw a 5.4% decline (-$2.0 billion) in overall building permits, totaling $34.6 billion—marking the second consecutive quarterly decrease. The non-residential sector fell 11.8% (-$1.8 billion) to $13.2 billion, mainly due to Ontario’s institutional segment, which dropped $1.7 billion after reaching record highs in Q2.
The industrial component also declined $504.7 million, again led by Ontario (-$617.2 million), with Quebec (+$132.9 million) mitigating some of the fall. In contrast, the commercial segment rose by $236.8 million, thanks to a surge in British Columbia (+$442.4 million), especially in hotels and indoor recreation projects.
The residential sector posted a 1.0% decline (-$213.5 million) in Q3, totaling $21.4 billion—its lowest level in constant dollars since tracking began in 2018.
Despite Q3 softness, Canada authorized 231,100 residential units in 2025 YTD, outpacing 2024’s 215,200 units over the same period.
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