Building permits rise in February, but residential construction weakens

Canada’s building permit activity picked up in February, rising 2.9% to $13.1 billion, according to new data from Statistics Canada.

But while non-residential construction rebounded sharply, residential permits continued to slide—particularly for multi-unit housing.

On an inflation-adjusted basis, the total value of permits rose 3.2% compared to January, and was up 5.6% from a year earlier.

Non-residential permits bounce back

After four straight months of declines, the value of non-residential permits surged by 15.3% to $4.7 billion. Most of that came from British Columbia, where major projects in the Vancouver area drove a $657.7 million increase. That included gains in both the commercial and institutional categories.

The industrial sector also saw renewed strength, posting its first monthly increase since September 2024.

Residential weakness continues

Residential permits, by contrast, fell 2.9% to $8.4 billion in February, led by a drop in multi-family construction intentions. That segment fell by $224.8 million nationally, with B.C. alone accounting for $185.5 million of the decline. The single-family segment was relatively flat, down just $22.6 million.

New Brunswick and Quebec also saw notable monthly drops, while Ontario helped offset the weakness with a $110-million increase in residential permits.

Overall, municipalities approved about 21,000 new multi-family dwellings and 4,800 single-family homes in February—a 7.1% decline from January.

The continued slowdown in residential permitting suggests that new supply may remain constrained in the near term, even as affordability pressures build and housing demand continues to rise.