Building permits, March 2025. (Source: Statistics Canada, Table 34-10-0285-01, Building permits, by type of building and type of work.)
The total value of building permits issued in Canada decreased by $549.4 million in March, falling 4.1 per cent to $12.9 billion, reports Statistics Canada. The decrease was led by the non-residential sector whose $716.3 million drop was tempered by a $166.9 million gain in the residential sector.
Across the non-residential segments, building permits rode the 14.5 per cent decline to post at $4.2 billion in March. Commercial construction intentions drove the fall, dropping $474.1 million, or 19 per cent, to come in at $2 billion for the month. By percentage, the institutional component was not far behind, falling 14.4 per cent to come in at $1.4 billion, $238.5 million behind the February values. The industrial component was almost flat, dipping a half per cent, or $3.7 million, to come in at $783 million, but extended the downward trend the segment has been on since October of 2024.
The drop in commercial construction intentions was most pronounced in Ontario, which saw a decline of $268.6 million, and British Columbia, which fell $187.1 million. Concurrently, a dip of $293.7 million in Saskatchewan drove the institutional component’s decrease. Losses in the institutional component in March were partially offset by a gain in Ontario where construction intentions for long-term care facilities and day care centres helped the component post a $121.1 million gain. Losses in the industrial component were felt most in Alberta, which came in $152.4 million lower than in February. Ontario’s increase of $177.2 million helped mitigate the overall decline, however.
The residential picture was a bit better across Canada, with a two per cent rise in intentions bringing the March figure to $8.7 billion. A $322.5 million gain in the multi-family component brought that segment to $5.9 billion. That was partially offset by a decline in the single-family component, which fell $155.6 million to $2.8 billion.
The rise in the multi-family component in March was particularly strong in British Columbia as the Vancouver census metropolitan area (CMA) saw $652.3 million more in permits issued versus February.
Overall, 22,800 multi-family dwellings and 4,400 single-family dwellings were authorized for construction in March, representing a 4.6 per cent increase from the previous month.
The total value of building permits in the first quarter was $39.1 billion, up 2.9 per cent from the previous quarter, a fifth consecutive quarterly increase. The residential sector grew $1.5 billion to $25.9 billion in that timeframe, fuelled by an almost 10 per cent gain in the multi-family component that landed the segment at a record high of $17.3 billion.
Non-residential construction intentions declined by 2.6 per cent on the quarter, falling to $13.2 billion, a second consecutive quarterly decline. Decreases in the industrial and institutional components were tempered by a gain in the commercial component.