Building permits drop from April’s record in May
The total value of building permits issued across the country in May dropped more than 12% from April’s record high total.
Statistics Canada reports that municipalities issued $11.7 billion worth of permits in the month. That figure was notably lower than the $13.4 billion issued in April.
British Columbia led May’s national decline with a drop of nearly 51%. This comes after the province experienced a record high for the total value of building permits issued in April. Excluding British Columbia, the total value of building permits for the remaining provinces and the territories edged down 0.7%.
The value of residential building permits fell 16.3% to $7.1 billion in May. British Columbia (-53.7%; -$1.1 billion) drove the decline in May following an unusually strong April, led by a record high value of multi-unit permits in the province.
Excluding British Columbia, residential construction intentions declined 3.8% for the remaining provinces and territories in May. Monthly declines were observed in Ontario (-7.9%; -$261.2 million), Alberta (-10.9%; -$122.4 million), and all three Maritime provinces (collectively down 4.5%; -$17.7 million).
Across Canada, municipalities issued 22,700 dwelling units for construction. That total brings the 12-month cumulative sum of dwellings approved for construction to 267,600 units since June 2023.
The value of non-residential permits, meanwhile, dropped 5.0% to $4.6 billion in May. Declines in the institutional (-18.0%; -$236.4 million) and commercial (-7.4%; -$194.1 million) components more than offset growth in the industrial component (+20.6%; +$187.2 million).
Despite month-over-month increases in non-residential permit values in six provinces and two territories, a substantial decline in British Columbia (-44.1%; -$420.3 million) weighed heavily on the sector in May. Excluding British Columbia, construction intentions in the non-residential sector increased 4.5% month over month.