The construction sector slowed in June, with the total value of building permits dropping to $12.0 billion, a 9.0 percent decline from May due to a sharp drop in Ontario’s institutional projects, which fell to $538 million from $1.9 billion the previous month.
Non-residential permits dropped $863.8 million to $4.9 billion, with Ontario’s sharp decline weighing on the sector. Alberta partly offset the losses with a $455.4-million increase in institutional projects, reflecting hospital construction plans in Red Deer. Industrial permits rose $192.7 million, led by gains in Quebec and Ontario. Commercial construction slipped $87.4 million as declines in Quebec, British Columbia and Nova Scotia were partly balanced by growth in Ontario.
Residential permits dropped $318 million to $7.1 billion. British Columbia’s multi-family segment fell $486.8 million, driving a national decline of $144.5 million in that category, while Ontario’s $261.1-million increase softened the impact. Single-family permits decreased $173.5 million, led by Ontario and Alberta.
The weaker June results ended five consecutive quarters of growth. In the second quarter, the total value of building permits fell $1.9 billion to $36.7 billion, driven by a 15.0 per cent decline in residential construction to $21.7 billion. Multi-family projects accounted for most of the drop, with Ontario and British Columbia leading the decreases. Toronto recorded its lowest inflation-adjusted permit value since 2018, while Vancouver also saw a notable pullback.
Single-family permits fell by $874.3 million in the quarter, mainly in Ontario and Alberta. Despite the decline in value, housing unit approvals rose 14.2 per cent year over year, with 305,400 units authorized between the third quarter of 2024 and the second quarter of 2025.
Non-residential construction reached a record $15.0 billion in the second quarter, led by Ontario’s institutional projects and supported by major hospital builds in St. Catharines–Niagara and Red Deer. Industrial intentions rose strongly, while commercial permits eased on losses in British Columbia, Alberta and New Brunswick.