Canadian Building Permits Decline 3.1% in October

On Thursday, Statistics Canada (StatCan) reported that the total value of building permits issued in Canada during October decreased 3.1%, or $399.1 million (CAD), to $12.6 billion. Despite the decline, the total value of permits remained the fourth highest level in the series, following a strong September in which construction intentions surged by $1.3 billion to the second highest level on record.

On a constant dollar basis (2017=100), the total value of building permits dropped by 3.6% from September but remained 8.1% higher compared to October 2023.

Residential

Residential construction intentions increased 2.3%, or $177.1 million, to $7.9 billion in October. This growth was driven by British Columbia, which saw a $275.6 million increase, and Alberta, up $158.9 million. Other provinces, including Nova Scotia and Manitoba, also contributed to the rise.

The multi-family sector saw a modest increase of $37.6 million, with gains recorded in seven provinces and one territory. Single-family permits rose by $139.6 million, primarily driven by Ontario’s $77.3 million increase, supported by contributions from seven other provinces and territories.

Across Canada, a total of 21,300 new multi-family units and 4,900 single-family units were authorized in October, reflecting a 6.7% increase in the total number of units approved for construction through permit issuance. Over the 12 months from November 2023 to October 2024, 274,100 units were authorized—a 2.7% increase from the 266,800 units authorized in the previous 12-month period.

Nonresidential

The value of nonresidential building permits dropped 11.0%, or $576.3 million, to $4.7 billion in October. Ontario and Manitoba saw the largest declines, with decreases across the institutional, commercial, and industrial sectors. The institutional sector fell by $368.2 million, while the commercial and industrial sectors decreased by $127.5 million and $80.6 million, respectively.

Ontario’s decline was primarily due to a $241.9 million drop in the institutional sector following a record-high September, while Manitoba’s decrease was driven by a $141.0 million reduction in the industrial sector.