Canadian municipalities issued $13.5 billion in building permits in March, up 10.3 percent from February, but the increase came mainly from large institutional and industrial projects while residential construction intentions declined.
Non-residential permits rose by $1.5 billion during the month, more than offsetting a $270.6 million drop in residential permits.
Permit values of institutional projects jumped 83.3 percent to $1.8 billion after approvals for medical facilities in the Vancouver area.
Industrial permits climbed 44.4 percent to $1.5 billion, with Ontario accounting for much of the gain. Commercial permits also increased, though at a slower pace, rising 12.3 percent to $2.2 billion.
Housing construction moved in the opposite direction.
Multi-family permits fell 4.9 percent nationally, weighed down by sharp declines in Ontario and Quebec. Ontario alone recorded a drop of nearly $400 million in multi-unit projects.
The decline comes as federal and provincial governments continue to face pressure over housing shortages and affordability problems in major cities.
Single-family construction showed little movement overall. A decline in Alberta was balanced by gains in Ontario, Saskatchewan and British Columbia.
The broader quarterly figures showed slower momentum beneath March’s headline increase.
Total building permit values rose 1.1 percent in the first quarter compared with the previous quarter after inflation adjustments. Residential permits accounted for most of the increase.
Even so, the number of housing units approved for construction continued to decline. Municipalities authorized 68,500 residential units in the first quarter, down from 71,000 during the same period last year.
Alberta posted one of the largest quarterly declines in multi-family construction intentions, down $548 million.
Meanwhile, the non-residential sector weakened over the quarter despite March’s sharp monthly increase. Commercial permits recorded their steepest quarterly decline since late 2020, falling more than $800 million.
Regional figures remained uneven across the country. Prince Edward Island and Nova Scotia posted some of the largest monthly increases in March, while New Brunswick and Nunavut recorded declines.
The data shows that construction activity increasingly tied to large public-sector and industrial developments while residential building activity softened in several major provinces.