Multi-Family Construction Intentions Weigh Down Residential Sector

June 23, 2025

In April, the total value of building permits issued in Canada decreased by $829.6 million (-6.6%) to $11.7 billion. British Columbia (-$1.2 billion) led this decrease in construction intentions, which was mitigated by Ontario (+$299.3 million).

On a constant dollar basis (2023=100), the total value of building permits issued in April fell by 6.6% from the previous month and by 16.4% on a year-over-year basis, following a strong upward movement in April 2024.

Multi-family construction intentions weigh down residential sector

Residential construction intentions declined 11.6% (-$967.7 million) to $7.4 billion in April 2025. The multi-family segment (-$882.5 million) was the primary contributor to this decline, while the single-family component (-$85.2 million) contributed to a lesser extent.

The reduction in multi-family permit values was driven by British Columbia (-$837.4 million). The Vancouver census metropolitan area (CMA) (-$1.0 billion) drove the province’s decrease, after bolstering the national multi-family component’s increase during the first quarter of 2025.

The decrease in single-family construction intentions in April was most pronounced in Alberta (-$37.4 million) and was partially offset by Quebec (+$26.6 million).

Across Canada, 21,400 multi-family dwellings and 4,200 single-family dwellings were authorized for construction in April, marking a 6.5% decrease in the total number of units authorized compared with the previous month.

Ontario leads non-residential sector gains

The total value of non-residential building permits issued in April rose by $138.2 million (+3.3%) to $4.3 billion. Growth in industrial (+$186.8 million) and commercial (+$68.6 million) construction intentions was moderated by a decline in the institutional component (-$117.2 million).

Overall, the increase in non-residential construction intentions was driven by Ontario (+$352.7 million), while British Columbia (-$341.0 million) tempered the gain.

Ontario’s non-residential construction intentions rose sharply by 20.8% to $2.0 billion in April, led by the commercial component (+$259.0 million) and supported by construction intentions for office buildings in the Toronto CMA. Ontario’s industrial construction intentions increased by $136.7 million, while the value of institutional permits declined by $42.9 million.

Meanwhile, the decline in British Columbia’s non-residential construction intentions were widespread, with losses being mainly in the commercial (-$164.5 million) and institutional (-$158.2 million) components.

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