Canada building permits drop 8.4% in February

Statistics Canada reported total building permits in Canada fell 8.4% in February, driven by a 24.0% decline in non-residential permits while residential permits rose 1.7%.

The decline reflected a roughly halving of institutional permits in the month. Commercial permits declined about 8%, contributing to the weakness in the non-residential sector. The February result was larger than market expectations of a 2.1% drop.

Statistics Canada's building permits series measures the value of permits issued for new buildings, renovations and alterations across roughly 2,400 municipalities representing about 95% of the national population. Permit issuance typically precedes construction spending and offers an early view of investment intentions in residential and non-residential sectors.

January figures provide context for the February swing. The total value of permits rose $607 million, or 4.8%, to $13.3 billion in January. On a constant-dollar basis (2023=100), the month-over-month increase was 4.3% and the year-over-year change was 0.8%.

Non-residential intentions led the January increase, climbing 9.4% to $5.4 billion. That gain included a $356.8 million jump in the industrial component and an institutional approval for a medical facility in the Toronto census metropolitan area valued at more than $800 million. Commercial permits fell $128.5 million in January.

On the residential side, permits rose $143 million to $8.0 billion in January. Single-family permit values increased $222.3 million to $2.7 billion while multi-unit permits fell $79.3 million. A total of 25,400 dwelling units were authorized in January, down 1.8% from December. The trailing 12-month count of multi-family units authorized reached 256,500, up from 241,800 in the prior period.

The release also included travel data showing that, for the first time, more Canadians flew overseas than to the United States. Canadian auto trips to the U.S. were down 34.9% in March compared with March 2024.

Upcoming permit releases and construction-start data will provide additional information on whether the February decline reflects the timing of large institutional approvals or broader changes in non-residential construction activity.