Building Permit Activity Declines

Following four consecutive months of reaching new highs, the total value of building permits dropped a record $1.6 billion to $9.5 billion in May, says Statistics Canada. Every component was down, with multi-family dwellings in Ontario accounting for nearly three fifths of the overall national decline. The value of permits for multi-family dwellings dropped 20.6 per cent to $3.3 billion in May, the lowest value since August 2020. Ontario was responsible for the majority of the decline. All provinces except for Newfoundland and Labrador posted a decrease in the value of permits issued for single-family dwellings, which fell 10.6 per cent nationally to $3.2 billion. Quebec accounted for almost half of the national decline, with fewer permits issued in municipalities outside of the census metropolitan areas. Overall, the value of permits issued in the residential sector pulled back 16 per cent to $6.5 billion. Construction intentions for the non-residential sector were down 12.2 per cent to $3 billion in May, with Ontario and Quebec falling 21.5 per cent and 22.9 per cent respectively.