The total value of building permits issued by municipalities in June rose by 6.1% to $11.6 billion, in no small part due to a notable significant increase in the institutional component.

Leading the way was construction in the non-residential sector. The value of permits there rose by 20.4% to $4.7 billion. A decline in the value of commercial permits (-7.7% or -$176.0 million) was more than offset by gains in the industrial (+51.0% or +$349.9 million) and institutional (+67.2% or +$619.3 million) components.

The two highest-valued permits in June were issued for the construction of new hospitals in Vaudreuil-Dorion, Quebec and Dawson Creek, British Columbia. Combined, those projects accounted for 58.6% of the total value of institutional construction permits.

Meanwhile, the total monthly value of residential permits declined 1.8% to $6.9 billion in June. Ontario (-11.4% or -$358.1 million) contributed the most to the decline, falling off after the province posted strong volumes of large multi-unit projects in May. Saskatchewan (-51.4% or -$58.5 million) and New Brunswick (-20.5% or -$20.7 million) also posted notable declines.

Municipalities issued permits for 22,000 new dwellings were issued in June.

Second quarter of 2023 declines compared with first quarter of 2023

The total value of building permits in the second quarter declined 1.0% from the first quarter to $32.2 billion, as the non-residential sector fell 9.6% to $12.0 billion, following its record high in the first quarter.

Despite the overall decline, the residential sector broke a three-quarter slump, increasing 4.9% in the second quarter to $20.3 billion. Year over year, the value of construction intentions in the residential sector remained below the level seen in the second quarter of 2022 ($24.2 billion).

Similarly, 64,400 dwelling units were created in permits issued in the second quarter of 2023, 2.7% more than in the first quarter (62,700 units), with British Columbia leading the quarterly gains (+24.4% or +2,700 new units). Nationally, new dwelling units created in the second quarter were 14.7% below the number of dwellings created in the second quarter of 2022 (75,400 units).