Canada Building Permits Miss Forecasts

Canada’s building permits declined 17.3% month-over-month to C$12.2 billion in July, following an 18.5% gain in June and missing forecasts for a 6.4% drop. This marked the steepest decline since August 2023. The value of non-residential building permits fell C$1.9 billion to C$5.0 billion, led by the institutional component, which declined C$1.5 billion to C$1.7 billion, followed by the industrial component, down C$443.3 million to C$795.5 million. Residential construction intentions fell C$701.2 million to C$7.2 billion, with the multi-unit component accounting for most of the decline, falling C$531.8 million to C$4.7 billion. The single-family component declined C$169.4 million to C$2.5 billion.

Canada’s building permits rose 18.5% month-over-month to C$14.9 billion in June 2026, rebounding sharply from a 1.7% decline in May and far exceeding forecasts for a 0.8% increase. This marks the highest reading in over two years. The value of non-residential building permits increased by C$1.8 billion to C$6.8 billion, led by the institutional component, which rose C$1.5 billion to C$3.2 billion. Industrial and commercial permits also increased, by C$268.8 million and C$67.9 million, respectively. Residential construction intentions climbed C$479.7 million, or 6.3%, to C$8.1 billion, driven by multi-unit projects, which rose C$283.7 million to C$5.3 billion, and single-family homes, up C$196 million to C$2.8 billion. In Q2 2026, the total value of building permits increased 3.7% quarter-over-quarter to C$40.4 billion.

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.