After reaching their second-highest total ever in September, the value of building permits came back down to earth in October.

Statistics Canada reports that municipalities issued $8.2 billion worth of permits for the month. That represented a drop of 14.6 percent from September’s near-record total.

Lowering permit values in October was a drop of 29.5 percent in non-residential values. After recording several large-value permits in September, Ontario accounted for more than four-fifths of the total decline recorded in October. Overall, municipalities issued $2.5 billion worth of non-residential permits for the month.

Commercial permits set a record decline, falling 40.9 percent to $1.2 billion in October, the lowest level since November 2011. The value of commercial permits in Ontario fell by 64.4 percent, following a record set in September due to the high-value permits issued for Project Python in Ottawa and the Breithaupt Block office buildings in Kitchener. Excluding Ontario, commercial permits for the rest of the country were stable compared with the previous month.

Industrial permit values dropped 19.8 percent to $582 million, with declines posted in every province. Quebec (-$60 million) and Prince Edward Island (-$55 million) recorded the largest declines, with the latter issuing a permit for a manufacturing plant worth $50 million in the prior month.

Despite a gain of 153.7 percent in Alberta, institutional permits decreased 9.9 percent nationally to $723 million. Quebec (-31.2 percent), Ontario (-15.5 percent) and Newfoundland and Labrador (-99.3 percent) registered the largest declines. The drop in Newfoundland and Labrador followed a $43-million jump in Corner Brook for a long-term care home permit issued in September.

Residential sector continues to show strength despite October declines

Although the total value of residential permits decreased 5.9 percent to $5.7 billion in October after a record high in September, the value of residential permits continued to show strength. Excluding Ontario (-9.4 percent) and British Columbia (-12.0 percent), the rest of the country reported a slight increase for the month.

Following five consecutive monthly gains, permits issued for single-family dwellings dropped 2.2 percent to $2.7 billion in October. Declines were reported in three provinces: Ontario (-8.7 percent), Newfoundland and Labrador (-8.0 percent) and New Brunswick (-3.4 percent).

Permits issued for multi-family dwellings dropped 9.0 percent to $3.0 billion, with Ontario (-10.0 percent) and British Columbia (-18.2 percent) recording the most significant declines. Conversely, Nova Scotia (+79.5 percent) reported the largest increase as Halifax cleared a backlog of permits for multi-family dwellings.

Overall construction activity in Ontario dropped by nearly 24 percent to $3.6 billion.