A significant drop in non-residential construction activity led to a drop in building permit values in February.

Statistics Canada reports that the total value of permits issued by municipalities in the country dropped by $1.1 billion for the month. The drop was exclusive to the non-residential sector, where total permit values contracted by $1.3 billion. That loss was offset marginally by a gain of $135.6 million in the residential sector.

The value of non-residential building permits fell 24.0% to $4.0 billion in February. The contraction was the steepest seen in the sector in almost two years.

The institutional component (-$987.2 million to $929.1 million) accounted for most of the decline in February 2026, while the commercial (-$160.0 million to $2.0 billion) and industrial (-$104.7 million to $985.1 million) components contributed to a lesser extent.

The reduction in institutional construction intentions was primarily attributable to Ontario (-$827.1 million). Alberta (-$146.5 million) and Quebec (-$88.8 million) also reported losses.

Meanwhile, the commercial component marked its fourth consecutive decline – again led by Ontario (-$106.6 million), while the contraction in the industrial sector was led principally by Quebec (-$186.4 million).

In contrast, residential permit values rose by 1.7% to reach $8.1 billion in February. The increase in the multi-unit component (+$180.3 million to $5.4 billion) was partially offset by a decline in the single-family component (-$44.7 million to $2.7 billion).

The rise in the multi-unit component in February was driven by Ontario (+$320.6 million) and was supported by British Columbia (+$217.6 million). Declines in Quebec (-$188.1 million), Nova Scotia (-$112.3 million) and Alberta (-$95.2 million) moderated the gain.

British Columbia (-$52.8 million) led the decrease in the single-family component in February, and an additional decline was recorded in Ontario (-$28.4 million). Meanwhile, Alberta (+$28.9 million) tempered these losses.

Nationwide, a total of 21,000 multi-unit dwellings and 3,900 single-family dwellings were authorized for construction in February, representing a 0.8% decrease from the previous month.

From March 2025 to February 2026, the total number of multi-family dwellings authorized was 255,500, up from 244,600 during the previous 12-month period.

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