Canada Building Permits Fall 8.4% in February

Canada's building permits fell 8.4% month-over-month to C$12.1 billion in February 2026, following a downwardly revised 3.5% gain in January, as construction intentions weakened across sectors. Non-residential permits plummeted 24.0%, the steepest decline since April 2023, dragging the overall index down by C$1.3 billion, with institutional projects accounting for most of the drop and commercial and industrial components contributing to a lesser extent. Residential permits partially offset the decline, rising to C$8.1 billion as multi-unit construction gains outweighed single-family weakness.

Building permits in Canada rose by 4.8% month-over-month to C$13.3 billion in January 2026, following a downwardly revised 6.1% advance in the prior month, against market forecasts of a 2% slump. The increase was mainly driven by non-residential intentions (9.4% to C$5.4 billion), with industrial permits (+C$356.8 million to C$1.2 billion) posting the largest monthly gain since July 2024 and institutional permits rising C$235.7 million to C$2.0 billion. Conversely, commercial permits fell C$128.5 million to C$2.2 billion. Residential construction intentions rose C$143.0 million to C$8.0 billion, as gains in the single-family segment (+C$222.3 million to C$2.7 billion) more than offset by a decline in the multi-unit segment (-C$79.3 million to C$5.3 billion).

Building permits in Canada rose 6.8% month-over-month to C$12.8 billion in December 2025, rebounding from a 13.1% decline in the previous month. Residential intentions increased by C$533.5 million to C$8.0 billion, as gains in multi-unit dwellings (+C$653.2 million to C$5.5 billion) offset a drop in single-family permits (-C$119.7 million to C$2.5 billion). Non-residential permits rose by C$287.8 million to C$4.8 billion, driven by the institutional component (+C$412.6 million), while commercial (-C$71.1 million) and industrial (-C$53.8 million) segments declined. On a year-on-year basis, the total value of permits increased by C$3.3 billion to C$149.7 billion in 2025.