The value of building permits took a significant dip in November 2024, marking a second consecutive monthly decline. The total value of permits decreased by $739.5 million, or 5.9%, falling to $11.7 billion. The drop follows a trend observed since October 2024, with residential and non-residential sectors contributing to the overall decrease.
The residential sector experienced a notable reduction of $588.1 million, or 7.5%, bringing the total value of residential permits down to $7.2 billion. The primary contributor to this downturn was a sharp drop in multi-unit construction intentions, which fell by $522.3 million. The single-family dwelling permits also saw a modest decline of $65.8 million during the same period.
The decrease in multi-unit construction permits was most pronounced in British Columbia, where the value of permits dropped by $375.4 million. This was largely attributed to a significant reduction in construction intentions in the Vancouver census metropolitan area, which saw a drop of $346.7 million. Nationally, multi-family dwellings accounted for 17,300 authorized units, while 4,700 single-family units were approved in November. This represented a 15.0% decrease in the total number of units approved compared to the previous month. However, the 12-month total from December 2023 to November 2024 saw a modest rise of 2.4%, with 273,300 units authorized compared to 267,000 in the same period the previous year.
While the residential sector struggled, the non-residential sector also saw a decrease in overall construction intentions. The total value of non-residential permits dropped by $151.4 million, or 3.2%, bringing the total for the sector to $4.5 billion. Ontario played a significant role in the decline, with a drop of $414.2 million. However, gains in other provinces helped mitigate the loss. British Columbia, for example, saw an increase of $139.4 million in its non-residential sector, largely driven by growth in institutional and commercial components. Similarly, Quebec reported a $111.9 million increase in non-residential permits, spurred by projects like a cathode active precursor materials facility in Bécancour and a large transit service center in Québec.
In Ontario, the non-residential sector was particularly hit by decreases in the industrial and commercial components, which fell by $372.5 million and $159.5 million, respectively. However, Ontario’s institutional component showed some resilience with a modest increase of $117.8 million. Meanwhile, Prince Edward Island also saw an uptick in non-residential permits, primarily due to growth in the institutional component, which rose by $59.0 million.
Despite the monthly declines, when adjusted for inflation using constant 2017 dollars, the overall value of building permits was down 5.8% from October 2024. On a year-over-year basis, however, the total value of permits was up 2.1%, indicating some positive trends in long-term building activity.
The fluctuations in the building permit data reflect the challenges and opportunities present in the Canadian construction landscape. While the residential sector faces pressures, especially in multi-unit projects, growth in certain provinces and segments of the non-residential market suggests a mixed but resilient outlook for the industry. The ongoing shifts in building permit trends will continue to be an important indicator for officials in navigating the construction market throughout 2025.