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Residential building permits fall in August as Ontario and Alberta declines outweigh western gains

Ontario Construction News staff writer

Residential construction intentions across Canada fell in August, with the total value of permits dropping $173.8 million (-2.4%) to $7.0 billion, according to Statistics Canada.

The decline was largely driven by decreases in Ontario (-$432.8 million) and Alberta (-$311.1 million), which offset gains in British Columbia (+$331.4 million) and Quebec (+$155.5 million).

The single-family housing component fell $112.3 million to $2.5 billion, with the most significant decreases recorded in Ontario (-$131.0 million) and Alberta (-$59.6 million). Growth in Quebec (+$36.8 million) and Manitoba (+$23.2 million) helped ease the national decline.

The multi-family sector saw a more modest decline, down $61.5 million to $4.5 billion. Ontario (-$301.8 million) and Alberta (-$251.5 million) once again led the downturn, but the losses were tempered by strong gains in British Columbia (+$329.7 million) — almost entirely concentrated in the Vancouver census metropolitan area (CMA), which rose $300.3 million — and in Quebec (+$118.7 million).

Nationally, municipalities authorized 20,500 multi-family units and 4,100 single-family homes in August, representing a 0.9% decrease from July.

While residential activity cooled, the non-residential sector edged up $34.6 million (+0.8%) to $4.6 billion in August.

The institutional component rose $211.3 million, led by a $235.3 million jump in Ontario, driven by hospital construction intentions in the Toronto CMA. British Columbia followed with an increase of $78.2 million, supported by new government building projects in Vancouver. The rise was partially offset by Nova Scotia (-$96.4 million), following a July spike in long-term care facility permits.

Meanwhile, the commercial component declined $134.0 million, led by Ontario (-$308.2 million) after two consecutive months of gains. British Columbia (+$190.4 million) helped temper the loss.

The industrial sector slipped $42.6 million, with decreases in eight provinces, led by Ontario (-$57.6 million). Quebec (+$90.8 million) provided the largest offset.

Overall, August’s permit figures show continued strength in institutional construction even as residential intentions — particularly in Ontario and Alberta — cool amid higher financing costs and uncertain housing market conditions.

Robin MacLennan, Editor, Ontario Construction News
Robin MacLennan, Editor, Ontario Construction News
Robin MacLennan has been a reporter, photographer and editor at newspapers and magazines in Barrie, Toronto and across Canada for more than three decades. She lives in North Bay. After venturing into corporate communications and promoting hospitals and healthcare, she happily returned to journalism full-time in 2020, joining Ontario Construction News as Writer and Editor. Robin can be reached at rmaclennan@ontarioconstructionnews.com
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