Canada Building Permits Rebound Sharply in March

Canada’s building permits rose 10.3% month-on-month to C$13 billion in March 2026, rebounding from a 7.8% decline in the previous month and beating forecasts of a 3% increase. The value of non-residential permits increased by C$1.5 billion to C$5.5 billion, led by the institutional component, which rose C$817.1 million. The industrial and commercial components also contributed, increasing by C$473.2 million and C$238 million, respectively. Meanwhile, residential construction intentions fell C$270.6 million, or 3.3%, to C$8 billion, mainly due to a decline in the multi-family component, while single-family permits were little changed. In the first quarter of 2026, the total value of building permits rose 1.1% from the previous quarter to C$39 billion.

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).