The value of building permits issued by Canadian municipalities fell to $12.4 billion in May, down 1.7 percent from April, as a sharp decline in industrial projects outweighed modest gains in residential construction.
The monthly decrease of $215 million was driven by the non-residential sector, where permit values dropped 6.1 percent to $4.7 billion. Residential permits increased 1.2 percent to $7.7 billion, limiting the overall decline.
Adjusted for inflation, total building permit values fell 1.6 percent from the previous month and were 7 percent lower than in May 2025.
Industrial construction accounted for most of the non-residential weakness. Permit values in that category fell $341 million to $861.3 million, led by Ontario, where intentions declined by $236.2 million. Quebec and Alberta also posted notable decreases, while eight provinces and one territory recorded lower industrial permit values.
Institutional permits also declined, largely because of fewer planned projects in Ontario and Quebec. An increase in British Columbia partly offset those losses.
Commercial construction moved in the opposite direction. Permit values rose $81.4 million to $2.4 billion, supported by gains in British Columbia, Ontario and Newfoundland and Labrador. A $183-million decline in Quebec reduced the national increase.
Residential construction was supported by multi-unit housing.
Permit values for apartments, condominiums and other multi-unit developments increased $161.9 million to $5.1 billion. British Columbia accounted for the largest increase, up $304.4 million, followed by Ontario, where permit values rose $235 million. The largest projects were concentrated in the Vancouver and Toronto census metropolitan areas.
The increase was partly offset by declines in Quebec and Nova Scotia.
Single-family construction continued to soften. Permit values fell $70.7 million to $2.6 billion, with Quebec recording the largest decline, followed by Manitoba and Alberta.
Municipalities authorized 24,100 new homes in May on an unadjusted basis, including 20,200 multi-unit dwellings and 3,900 single-family homes. That was down 0.6 percent from April.
Over the 12 months ending in May, municipalities approved permits for 301,400 housing units, compared with 303,500 during the same period a year earlier. The figures indicate that the pace of new housing approvals has changed little over the past year, despite monthly fluctuations in construction intentions.