The value of building permits issued across Canada rose sharply in October.
Municipalities authorized $13.8 billion in building permits, which is 15 percent more than in September.
Residential permits climbed to $8.6 billion due to the approvals for apartment and condominium projects. Multi-family construction dominated the increase, with a $6 billion rise. Toronto alone burdened with a substantial portion of the national jump. Quebec also posted a modest increase, while other provinces contributed smaller gains.
By contrast, single-family home construction showed little momentum. Permit values rose only slightly, with Alberta accounting for most of the increase. In practical terms, the data suggest builders remain cautious about ground-oriented housing because of high financing costs, affordability pressures, and weaker demand from first-time buyers.
In total, just over 24,000 multi-family units and about 4,100 single-family homes were approved nationwide in October. Multi-family approvals were higher than in previous months and remain above last year’s pace.
Non-residential construction permit values reached $5.3 billion. Commercial projects led the increase, largely due to office developments in Ontario, again centred on Toronto. Institutional construction, including projects such as schools and health facilities, also rose, with British Columbia posting the largest increase. Industrial construction, however, slipped slightly, weighed down by a decline in Quebec that offset gains elsewhere.
When adjusted for inflation, the total value of permits was higher than a year earlier, but the year-over-year growth was far more modest than the monthly jump. That gap highlights a broader concern, particularly when large, one-off projects dominate the data.
As interest rates remain elevated and construction costs continue to pose challenges for developers, the sustainability of October’s rebound remains uncertain.