Value of Canadian Building Permits Increases 11.0% in December

On Tuesday, Statistics Canada (StatCan) reported that total value of building permits rose 11.0% to $13.1 billion (CAD) in December. On a constant dollar basis (2017=100), the total value of building permits issued grew 8.8% from the previous month and was up 30.5% year-over-year.

Residential

The total value of residential permits rose $1.6 billion to $9.0 billion in December. Multi-unit construction intentions contributed the most to the gain, increasing $1.5 billion—a 33.3% jump from the previous month.

The rise in multi-unit permits was driven primarily by gains in Ontario, up $985.5 million, and British Columbia, up $566.0 million.

Single-family intentions increased 1.8% ($52.1 million) to $2.9 billion, with gains recorded in six provinces and two territories.

Nonresidential

The total value of nonresidential permits decreased 5.9%, or $262.2 million, to $4.2 billion in December, marking the third consecutive monthly decline.

The decline was mainly driven by the commercial sector, which fell by $221.1 million, and the institutional sector, down $167.6 million. This was more than offset by a gain of $126.5 million in the industrial sector.

Nonresidential intentions declined in seven provinces and one territory.

Q4 Review

The total value of building permits in Q4 increased 1.2%, or $430.8 million, to $37.5 billion, marking the fourth consecutive quarterly rise, though the slowest in 2024. Growth was driven by the residential sector, while the nonresidential sector declined following a record high in Q3.

Residential construction intentions rose 8.0%, or $1.8 billion, to $24.3 billion. Multi-family permits accounted for 70.1% of this increase, up $1.3 billion, while single-family intentions rose $535.3 million, contributing 29.9% of the gain.

The value of nonresidential building permits fell 9.3%, or $1.4 billion, to $13.3 billion, following a record high in Q3. The industrial and commercial sectors saw declines of $876.1 million and $635.0 million, respectively, while the institutional sector experienced a $150.1 million increase.