Investment in building construction declined in October, with weakness in residential projects outweighing modest gains outside housing. Total investment fell 0.5% from September to $22.3 billion.
Single-family home building dropped 2.5%, continuing a pattern seen through much of 2025 as builders scale back detached housing amid affordability constraints and slower sales. Multi-unit construction rose 0.6%, but the increase was not large enough to offset the pullback in single-family projects.
Ontario and Alberta accounted for most of the monthly decline in single-family construction, together posting a reduction of nearly $181 million. In total, eight provinces and one territory recorded declines, indicating the slowdown was broadly based rather than regional or temporary.
Non-residential construction edged up 0.2% to $6.8 billion, offering limited support to overall investment. Commercial and institutional construction posted small gains, while industrial construction slipped again. Industrial investment has been trending lower since its January peak, raising concerns about the durability of large capital projects tied to manufacturing and resource development.
British Columbia drove most of the increase in commercial and institutional construction, while Ontario recorded a decline in institutional investment. Alberta saw modest institutional gains but also contributed to the industrial downturn. The mixed provincial picture suggests public and private project pipelines are moving unevenly across the country.
On a year-over-year basis, building construction investment was up 5.7% in nominal terms. After adjusting for price changes, however, total investment declined 0.6% from September and was up only 2.3% from a year earlier, pointing to slowing real activity as the year draws to a close.