The wave has broken.

After four consecutive months of record highs, building permit values not only slowed in May, they crashed.

Statistics Canada reports that the total value of permits issued across the country fell by $1.6 billion—the largest loss in permit values ever recorded. Permit values ended the month at $9.5 billion, down 14.8 percent from the month previous.

Every component lost ground for the month. A large drop in the value of multi-family dwellings in Ontario in particular accounted for nearly three fifths of the overall national decline. Indeed, the value of permits for multi-family housing in Ontario was cut nearly in half compared with April. The segment lost a little less than $1 billion.

The value of permits for multi-family dwellings dropped 20.6 percent to $3.3 billion in May, the lowest value since August 2020.

All provinces except for Newfoundland and Labrador posted decreases in the value of permits issued for single-family dwellings, which fell 10.6 percent 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 percent to $6.5 billion.

Construction intentions for the non-residential sector, meanwhile, were down 12.2 percent to $3 billion in May, with Ontario and Quebec falling 21.5 percent and 22.9 percent respectively.

Commercial permits tumbled 15.8 percent to $1.6 billion overall. Ontario dropped 33.9 percent as no permit in excess of $25 million was issued for the province in May, compared with six in the previous month, worth a total of $295 million.

The value of permits issued for industrial buildings fell 14.6 percent to $511 million. Seven provinces reported a decline in this component, with Quebec recording the largest decrease. Quebec saw an uptick in April, largely due to a $105 million permit issued for renovations to a mining facility in the municipality of Sept-Îles.

The value of institutional permits decreased 3.4 percent to $900 million. Gains in four provinces, led by British Columbia and Manitoba, were not enough to counter a $115 million decline observed in Quebec.

Featured image: Building permit infographic. (Statistics Canada)