Canada’s construction sector wrapped up December 2024 with a notable uptick in building permits, registering a total value of $13.1 billion — a robust 11.0% increase from the previous month. While the residential sector experienced the most significant growth, the overall results reflect strengths and challenges across the nation’s various construction sectors.
The residential market saw an impressive surge, driven by a 21.2% rise in permit values. Residential construction intentions reached $9.0 billion, with multi-unit housing permits accounting for the lion’s share of the increase. The sector grew by $1.5 billion, representing a 33.3% jump from November. Ontario and British Columbia were central to this growth, contributing over $1.5 billion in multi-unit construction, including large-scale developments in Toronto and Vancouver. Additionally, the single-family home market showed modest growth, with permits rising by 1.8%, largely driven by slight increases in provinces like Ontario, British Columbia, and Manitoba.
Meanwhile, the non-residential sector encountered a decline in December, with a decrease of 5.9% in permit values, totaling $4.2 billion. The drop was primarily attributed to weakened performance in the commercial and institutional categories, with Quebec being a significant factor. The province saw a decline of $269.1 million in non-residential permits, mainly due to drops in industrial and commercial construction, despite a slight gain in the institutional sector. Ontario’s non-residential construction, however, saw an uptick, largely in the industrial component, which saw an increase of $315.8 million.
On a quarterly basis, Canada’s building permits showed continued but slower growth. For the fourth quarter of 2024, the value of permits rose by $430.8 million, marking the fourth consecutive quarterly increase, albeit the smallest of the year. The residential sector was the primary driver of growth, contributing a solid $1.8 billion increase. Multi-family housing led this expansion, particularly in Ontario, while single-family housing saw growth in several provinces, especially in Alberta and Ontario. In contrast, the non-residential sector experienced a contraction, with a significant $1.4 billion drop, largely due to reductions in industrial and commercial construction across various provinces.
In 2024 as a whole, Canada saw a 7.8% increase in the total value of building permits, reaching a record high of $145.3 billion. The residential sector was tempered by a noticeable decline in single-family construction intentions, which saw a significant 30.9% drop from previous years. The multi-family housing market, however, was a bright spot, seeing an increase of 12.2% to reach a total of $34.1 billion, driven by demand for apartment-style living in cities like Toronto and Vancouver.
The non-residential construction sector remained steady overall, with industrial and commercial sectors growing, particularly in projects tied to the electric vehicle supply chain. Ontario and Quebec saw substantial investment in manufacturing plants for battery production, a key development fueled by provincial and federal support for Canada’s electric vehicle ambitions. While institutional permits fell slightly, they remained near their historical highs, indicating continued demand for healthcare, education, and government infrastructure.