Single-Family Component Drives the Decline in Residential Investment, Building Construction May 2026

July 30, 2026

The total value of investment in building construction edged down $66.8 million (-0.3%) to $23.4 billion in May. The decline in the residential sector (-0.5%) was moderated by a slight increase in the non-residential sector (+0.2%). Year over year, investment in building construction grew 5.9% in May.

On a constant dollar basis (2023=100), the total value of investment in building construction declined 0.4% from the previous month to $21.3 billion in May, but it was up 3.1% year over year.

Single-family component drives the decline in residential investment

In May, investment in residential building construction decreased $83.0 million to $16.2 billion. The decline was driven by the single-family component (-1.9%), while the multi-unit component (+0.7%) experienced an increase.

Investment in single-family construction was down $140.7 million to $7.4 billion in May. New Brunswick (-$36.5 million) and Quebec (-$36.4 million) led the decrease and were supported by declines across six other provinces and two territories.

Investment in multi-unit construction edged up $57.8 million to $8.8 billion in May. Growth in British Columbia (+$52.5 million), Ontario (+$44.8 million), Manitoba (+$30.8 million) and Saskatchewan (+$23.8 million) was moderated by declines in two provinces and two territories, led by Alberta (-$80.1 million).

Industrial component leads non-residential sector

In May, the value of non-residential investment in building construction edged up $16.1 million to $7.1 billion. Growth in the industrial component (+1.8%) was moderated by slight declines in the commercial (-0.2%) and institutional (-0.1%) components.

Investment in the industrial component increased $25.7 million to $1.5 billion in May, led by British Columbia (+$14.5 million) and Ontario (+$10.9 million). Overall, four provinces and two territories contributed to the growth in this component.

Investment in the commercial component edged down $8.0 million to $3.5 billion in May. The decrease was largely attributable to British Columbia (-$9.6 million) and Ontario (-$6.8 million). Gains in Quebec (+$5.9 million) and Alberta (+$2.3 million) moderated the overall decline.

Investment in institutional construction decreased $1.5 million to $2.2 billion in May. Declines in eight provinces and three territories (-$12.5 million in total) were tempered by an increase in Ontario (+$10.9 million).