Statistics Canada released its monthly report on the value of building permits issued across the country on Friday.

The agency reports that Canadian municipalities issued $8.3 billion worth of permits in September, a drop of 6.5 percent compared to August. The largest declines were reported in the residential sector.

The value of residential building permits dropped 10.7 percent to $5.1 billion. Within that figure, the value of permits issued for multi-family dwellings fell 12.1 percent to $2.9 billion, and the value of permits for single-family dwellings decreased 8.7 percent to $2.2 billion. This latter decline was largely due to a decrease in Ontario (-$196 million), following strong growth in August.

Activity in the non-residential sector was more positive. Statistics Canada reports that the value of commercial permits rose 6.1 percent to $2.0 billion in September. This increase more than offset declines in the value of industrial and institutional permits.

Permit values in Ontario for the month dropped 7.2 percent to $3.45 billion. The value of non-residential permits dropped 2.5 percent to $1.29 billion in the province, largely due to reduced industrial-sector activity (down 26 percent to $280 million). Activity in the commercial sector rose by 10.7 percent to $769 million, and dropped by 3.3 percent to $241 million in the institutional sector.

Activity in Ontario’s residential sector dropped by 9.8 percent (or $237 million), with decreases reported in both sub-sectors.

National results from the third quarter of the year also show declines. Municipalities issued $25.7 billion of permits in the third quarter, down 1.2 percent from the previous quarter. 

The value of permits was down in four provinces in the third quarter compared with the second quarter. The largest decrease was in British Columbia (-17.0 percent to $4.7 billion), following strong gains in the second quarter. Results across the country were mixed, but permit values in Ontario rose 6.1 percent to a record quarterly value of $10.7 billion, largely due to the value of multi-family permits.

The total value of permits issued in the first three quarters of 2019 was 2.2 percent (or $1.7 billion) higher than the same period in 2018. Municipalities approved the construction of 176,582 new dwellings (+0.4 percent).