Ontario Construction News staff writer
Residential housing investment in Canada fell in March, with Ontario leading declines in both multi-unit construction and single-family homes, Statistics Canada said in data released on May 25.
Investment in residential building construction dropped nationally by $345.4 million to $15.5 billion in March compared to the previous month with declines recorded in multi-unit and single-family components. Investment in multi-unit construction fell for the third consecutive month with Ontario leading the decline followed by Alberta.
Gains in multi-unit construction investment were recorded in three provinces and two territories led by Newfoundland and Labrador.
Ontario also led the drop in single-family home construction investment, which fell $119.5 million in March with broad declines in seven other provinces and one territory accounting for the overall national decline of $149.9 million to $7.2 billion.
Statistics Canada said the total value of building construction fell 1.3 per cent to $22.6 billion in March compared to the previous month. Investment in the residential sector fell 2.2 per cent nationally, with the non-residential sector edging up.
Year over year investment in building construction was down 2.9 per cent in March, Statistics Canada said.
The value of non-residential construction rose by $40.8 million to $7 billion in March across the country led by growth in the industrial component followed by the commercial sector and moderated by a slight decline in the institutional component.
Industrial construction investment was greatest in British Columbia with declines across seven provinces and one territory led by Ontario. The total value of investment in building construction fell by 0.7 per cent in the first quarter to $68.8 billion dragged down by the residential component.
In its housing market outlook for 2026, the Canada Mortgage and Housing Corporation said new home construction in Canada will continue to decline until 2028, citing inflated costs for developers, weaker demand and more unsold homes.
In 2025, 259,000 homes began construction across Canada. That number is projected to fall to 247,000 this year, 223,000 in 2027 and 216,000 in 2028.
Condominium starts will be especially weak, CMHC said.
