Ottawa, ON — The total value of building permits took a bit of a nosedive for the month of May. Following four months of consecutive new highs, the value dropped a record $1.6 billion to $9.5 billion. Every component was down, with multi-family dwellings in Ontario accounting for nearly three-fifths of the overall national decline.
For multi-family dwellings, the value of permits dropped 20.6 per cent to $3.3 billion in May, the lowest value since August 2020. Ontario was responsible for the majority of the decline. All provinces except for Newfoundland and Labrador posted a decrease in the value of permits issued for single-family dwellings, which fell 10.6 per cent nationally to $3.2 billion. Quebec accounted for almost half of the national decline, with fewer permits issued in municipalities outside of the census metropolitan areas.
Overall, the value of permits issued in the residential sector pulled back 16 per cent to $6.5 billion. Construction intentions for the non-residential sector were down 12.2 per cent to $3 billion in May, with Ontario and Quebec falling 21.5 per cent and 22.9 per cent, respectively.
Commercial permits tumbled 15.8 per cent to $1.6 billion. Ontario dropped 33.9 per cent as no permit in excess of $25 million was issued for the province in May, compared with six in the previous month.
For industrial buildings, the value of permits fell 14.6 per cent to $511 million. Seven provinces reported a decline in this component, with Quebec recording the largest decrease. Quebec saw an uptick in April, which was largely due to a $105 million permit issued for renovations to a mining facility in the municipality of Sept-Îles in Quebec.
The value of institutional permits decreased 3.4 per cent to $900 million. Gains in four provinces, led by British Columbia and Manitoba, were not enough to counter the decline in Quebec.