Canada’s construction outlook dimmed slightly in August as the total value of building permits fell 1.2 percent to $11.6 billion. The national decline is equal to $139.2 million due to drops in Ontario and Alberta.
On a constant-dollar basis, building intentions dropped 1.5 percent from July and 5.9 percent year over year. That annual dip underlines persistent weakness in construction demand amid high borrowing costs and economic uncertainty.
Residential permits decreased 2.4 percent to $7.0 billion in August. Ontario is down $432.8 million, and Alberta is off $311.1 million. Both provinces have been struggling with affordability and fluctuating demand for new housing. British Columbia bucked the trend with a $331.4 million increase, while Quebec added $155.5 million.
Single-family homes recorded a decline of $112.3 million. The multi-family segment fell $61.5 million in Ontario and Alberta retreated. Vancouver’s market stood out and posted more than $300 million in new multi-family permits.
Altogether, 20,500 multi-family units and 4,100 single-family dwellings were authorized in August, a slight 0.9 percent decline from July.
Non-residential construction provided a modest counterweight, climbing 0.8 percent to $4.6 billion. Institutional permits rose 14.4 percent to $1.68 billion. Ontario recorded a surge in hospital-related projects in Toronto, while British Columbia reported higher government-building intentions in Vancouver. Nova Scotia experienced a $96.4 million pullback.
The commercial sector contracted 6.0 percent to $2.1 billion, reversing two months of increases. Industrial permits slid 5.3 percent to $763 million. Quebec reported a $90.8 million increase that tempered the national drop.
The Northwest Territories posted a more than 4,500 percent jump. Yukon also showed strong momentum, up 207 percent. Nunavut plunged nearly 91 percent. British Columbia’s 36.7 percent gain and Quebec’s 14 percent rise stood out against Ontario’s 11.9 percent and Alberta’s 23.2 percent declines.
The latest figures add to concerns that the construction industry remains vulnerable to broader economic pressures. Rising financing costs, uncertainty over demand, and policy debates on housing supply continue to influence builders’ intentions. While Vancouver and Toronto dominate the permit landscape, growth is uneven.