Canada building permit values decrease to $12.4 billion in May

Canada's building permit values saw a 1.7 per cent decrease to $12.4 billion in May. While the non-residential sector declined by 6.1 per cent to $4.7 billion, the residential sector experienced a 1.2 per cent increase in construction intentions.

In the non-residential sector, industrial losses were driven by declines in Ontario, Quebec, and Alberta. However, the commercial component saw growth, led by British Columbia. Within the residential sector, multi-unit construction increased, particularly in British Columbia and Ontario, while single-family construction declined, notably in Quebec, Manitoba, and Alberta.

Broader economic trends indicate a slow start to 2026 for non-residential construction, with total starts reaching $26.6 billion through the first half of the year—the slowest pace through June in five years. This slowdown is attributed to macroeconomic headwinds, including trade uncertainty regarding CUSMA and recent GDP contractions. Additionally, a declining population and a 17 per cent decrease in non-permanent residents have contributed to the softening market.