According to Statistics Canada, following four consecutive months of reaching new highs, the total value of building permits dropped a record $1.6 billion (-14.8 percent) to $9.5 billion in May. Every component was down, with multi-family dwellings in Ontario accounting for nearly three fifths of the overall national decline.
The value of permits for multi-family dwellings dropped 20.6 percent to $3.3 billion in May, the lowest value since August 2020. Ontario was responsible for the majority of the decline.
Construction intentions for the non-residential sector were down 12.2 percent to $3.0 billion in May, with Ontario and Quebec falling 21.5 percent and 22.9 percent respectively.
Commercial permits tumbled 15.8 percent to $1.6 billion overall. Ontario dropped 33.9 percent as no permit in excess of $25 million was issued for the province in May, compared with six in the previous month, worth a total of $295 million.
The value of permits issued for industrial buildings fell 14.6 percent to $511 million. Seven provinces reported a decline in this component, with Quebec recording the largest decrease. Quebec saw an uptick in April, largely due to a $105 million permit issued for renovations to a mining facility in the municipality of Sept-Îles.
The value of institutional permits decreased 3.4 percent to $900 million. Gains in four provinces, led by British Columbia and Manitoba, were not enough to counter a $115 million decline observed in Quebec.