Building permit values edged down slightly in July, with slowing activity in the non-residential sector more than offsetting a gain in residential construction.

Statistics Canada reports that the total value of permits issued by municipalities reached $11.9 billion for the month, a decrease of $10.8 million, or 0.1% compared to the month previous.

The value of non-residential building permits dropped by $279.2 million to $4.6 billion in July. The industrial (-$252.9 million) and institutional (-$196.0 million) components declined, while the commercial component (+$169.7 million) tempered the decrease.

In July, the decrease in the industrial component was primarily attributable to Ontario (-$190.9 million) and Quebec (-$114.8 million).

Alberta (-$192.1 million) led the decline in the institutional component, after hospital construction intentions in the province bolstered the national level in June. The decline in July was tempered by gains in Nova Scotia (+$65.9 million) and Quebec (+$57.8 million).

Gains in the commercial component in July were led by Ontario (+$82.5 million), followed by Quebec (+$59.3 million) and Nunavut (+$30.8 million). Meanwhile, the commercial component was down in five provinces, slightly moderating the gains.

Ontario drives residential sector increase

Despite the downward trend since January 2025, residential construction intentions rose $268.3 million to $7.3 billion in July. The national increase in the residential sector in July was driven by Ontario (+$497.5 million).

The single-family component increased $143.5 million to $2.6 billion in July, led by Ontario (+$114.6 million) and followed by Alberta (+$35.2 million). Overall, seven provinces and three territories contributed to the increase, while Quebec (-$17.2 million), Manitoba (-$12.5 million) and British Columbia (-$6.2 million) tempered the growth.

The multi-unit component grew $124.8 million to $4.7 billion and was driven by Ontario (+$382.8 million), specifically the Toronto census metropolitan area (+$329.5 million), followed by Alberta (+$84.7 million). The growth was partially offset by Quebec (-$160.0 million), Nova Scotia (-$57.2 million) and New Brunswick (-$55.0 million).

Nationwide, municipalities issued permits for construction of 20,000 multi-unit dwellings and 4,100 single-family dwellings in July – an increase of 1.9% from June.