Canada Building Permits Fall in May

Canada's building permits fell by 1.7% month-on-month to C$12.4 billion in May 2026, slowing from a decline of 7.6% in the previous month and contrasting with market expectations of a 2.4% increase. The decrease was driven by the non-residential sector, where permit values dropped 6.1% to C$ 4.7 billion, led by a decline in the industrial components by C$341.0 million, while an increase in the commercial component tempered the decline by C$81.4 million. In contrast, the value of residential permits increased 1.2% to C$7.7 billion, as a C$161.9 million increase in multi-unit permits more than offset a C$70.7 million decline in single-family permits. Compared with the same month a year earlier, the total value of building permits was 4.5% lower.

Canada’s building permits fell by 7.6% month-on-month to C$12.5 billion in April 2026, reversing a 10.6% increase in the previous month and missing forecasts of a 3.5% decline. The value of non-residential permits dropped 10.5% to C$5.0 billion, led by declines in the institutional (-C$388.2 million) and industrial (-C$323.2 million) components, partly offset by a rise in commercial permits (+C$125.6 million). Residential construction intentions fell 5.5% to C$7.5 billion, mainly due to a decline in multi-family permits (-C$429.7 million), while the value of single-family permits remained virtually unchanged at C$2.7 billion. Despite the monthly decline, the total value of building permits issued in April was 2.7% higher than a year earlier.

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.