The construction sector recorded a sharp increase in May. The total value of building permits rose by 12.0 per cent to $13.1 billion.
The monthly gain of $1.4 billion was driven almost entirely by a significant institutional project in Ontario in the Niagara region. It is seven times greater than the average for major institutional projects, pushing Ontario’s institutional permit total to a record high.
The overall value of building permits rose by 11.8 per cent from April and was up 5.1 per cent compared with May 2024.
Non-residential permits totalled $5.6 billion in May, up $1.2 billion from the previous month. The Niagara hospital project also lifted the national institutional total to $2.5 billion.
Commercial permits increased modestly, rising by $87.8 million to reach $2.3 billion. Ontario posted the largest monthly decline at $71.9 million.
The industrial component saw a decrease of $117.2 million in May. Quebec recorded the sharpest decline at $50.8 million, followed by smaller decreases in six other provinces.
The value of residential permits rose by $169.8 million to $7.5 billion, with most of the growth attributed to British Columbia’s multi-family housing sector. In May, B.C. posted a $687.7 million increase in multi-family permits, reaching $1.5 billion.
Nationally, the value of multi-family permits increased by $194.8 million to $4.9 billion. However, the growth was partially offset by a $382.8 million decline in Ontario’s multi-family segment.
Single-family permit values edged down by $25.0 million to $2.6 billion. Ontario again posted the largest decrease, down $77.5 million, while seven provinces and two territories recorded modest increases.
A total of 21,000 new multi-unit dwellings and 4,400 single-family homes were authorized for construction across Canada in May. The overall number of housing units authorized declined slightly by 0.2 per cent compared to April.
Despite the gains, the decline in industrial activity and the dip in overall unit counts point to uneven momentum in Canada’s construction sector.