The total value of building permits issued in Canada saw a decrease in October 2024, falling by 3.1% to $12.6 billion, according to Statistics Canada. The drop, which amounted to a $399.1 million decrease, comes after a significant spike in September that saw construction intentions surge by $1.3 billion to the second-highest level recorded in the series.
Despite the decline, October’s total permit value remained substantial, marking the fourth-highest level ever recorded for the series. On a year-over-year basis, the value of building permits was up 8.1%, signaling an ongoing trend of growth over the past 12 months.
The decline in overall building permits was primarily driven by a notable dip in the non-residential sector, which fell by 11% to $4.7 billion. Ontario and Manitoba were key contributors to this drop. Ontario alone accounted for a $300.9 million reduction in non-residential permits, while Manitoba saw a decrease of $207.5 million. The provincial declines were spread across various components, including institutional, commercial, and industrial construction projects.
Ontario’s decrease in non-residential building permits was largely attributed to a drop in the institutional sector, which saw a reduction of $241.9 million, following a record-high month in September. Manitoba’s decrease was more focused on industrial construction, where the value of permits fell by $141 million in October.
On a more positive note, the residential construction sector saw a slight uptick in October, with the total value of residential permits rising by $177.1 million, or 2.3%, to reach $7.9 billion, driven by strong performances in British Columbia and Alberta. British Columbia, in particular, led the charge with a $275.6 million increase while Alberta followed with a $158.9 million gain.
In contrast, Ontario saw a decline in its multi-family dwelling permits. Its multi-family sector experienced a sharp $472.8 million decrease, following a surge in September, primarily due to several large-scale multi-family dwelling construction projects.
While British Columbia and Alberta experienced growth, Ontario’s mixed performance in multi-family and single-family permits led to a dampened overall outlook for residential construction. However, the total number of units authorized for construction showed promising signs of growth. A total of 21,300 new multi-family dwellings and 4,900 single-family dwellings were authorized in October, representing a 6.7% increase in the number of units approved for construction.
The 12-month cumulative total from November 2023 to October 2024 rose by 2.7%, with 274,100 units authorized, compared to 266,800 units during the same period in the previous year. This increase points to a continued demand for housing across the country, especially in the multi-family sector, where demand has been steady.
In the face of uncertainty in certain regions, Canada’s construction industry remains a critical engine of economic activity, with varied performance across sectors and provinces. It is clear that while challenges exist, the overall outlook remains robust, and Canada’s housing needs are expected to continue driving the sector forward.