Building permits fall 5.4% in Q3 as residential activity hits lowest level since 2018

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The total value of building permits issued in Canada climbed 4.5% in September to $11.7 billion, according to Statistics Canada.

The gain marked a solid monthly rebound after two weaker months, though overall permit values for the third quarter still declined as construction intentions eased earlier in the summer.

Residential permits rose 4.8% to $7.3 billion, driven by multi-family projects in Alberta and Quebec and by single-family gains in Ontario.

Non-residential permits were up 4.0% to $4.4 billion, supported by commercial and industrial projects that offset declines in institutional construction, particularly in Alberta and Quebec.

Quarterly weakness led by Ontario’s institutional slowdown

Despite September’s improvement, total permit values fell 5.4% in the third quarter to $34.6 billion, marking a second straight quarterly decline.

“After a strong first quarter, the value of residential sector building permits continued their decline, falling $213.5 million (-1.0%) to $21.4 billion in the third quarter,” Statistics Canada noted. “This was its lowest level (in constant dollars) since the series started in 2018.”

Much of the quarterly weakness stemmed from a sharp pullback in Ontario’s institutional sector, which had hit record highs earlier in the year.

So far in 2025, municipalities have approved 231,100 housing units, up from 215,200 during the same period last year.

Value of building permits for the single-family
and multi-family components

Value of building permits for the single-family and multi-family components
Source: Statistics Canada

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Last modified: November 12, 2025