The total value of building permits issued in Canada fell 4.1 per cent in September to $12.9 billion, as declines in both residential and non-residential construction intentions weighed on the monthly results, according to Statistics Canada.
The $552.8-million decrease was led by a $475.7-million drop in the residential sector, while non-residential permits declined by $77.1 million. On a constant-dollar basis, the total value of permits fell 4.5 per cent from August but remained 1.9 per cent higher than September 2025.
Multi-family permits lead residential decline
Residential construction intentions declined 5.8 per cent to $7.8 billion in September, largely because of a significant reduction in multi-family building permits.
The value of multi-family permits fell $529.3 million to $5.1 billion, partially offset by a $53.6-million increase in single-family permits, which reached $2.7 billion.
British Columbia accounted for the largest portion of the multi-family decline, with permits falling $292.1 million. Alberta followed with a decrease of $186.8 million. Overall, eight provinces and one territory contributed to the decline in multi-family construction intentions.
Single-family construction intentions recorded a different trend, with Ontario leading the gains. The province posted a $103.3-million increase in September, although declines in six provinces and two territories moderated the overall improvement.
British Columbia recorded the largest provincial decrease in the single-family component, at $20 million.
Institutional permits weigh on non-residential construction
The non-residential sector recorded a more modest decline in September, with the value of building permits falling $77.1 million to $5.1 billion.
The decrease was driven by the institutional component, which dropped $171.5 million to $1.6 billion. Gains in industrial construction intentions provided a partial offset, with permits increasing $90.9 million to $1.3 billion.
Quebec recorded the largest decline in institutional permits, down $95.5 million, followed by Saskatchewan at $43.6 million and Alberta at $39.3 million. Eight provinces and one territory contributed to the overall decrease.
Industrial construction intentions were led by Ontario, where permits increased $299.2 million. Nova Scotia followed with a $128.1-million gain.
Those increases were partly offset by declines in Quebec and Alberta, where industrial permits fell $164.1 million and $119.8 million, respectively.
The commercial component also recorded an increase, with seven provinces contributing to the gain. Alberta led the provinces with a $50.6-million increase.
Third-quarter permits fall 3.6%
Looking at the broader quarterly picture, the total value of building permits declined $1.5 billion to $38.8 billion in the third quarter of 2026, a decrease of 3.6 per cent compared with the previous quarter.
On a constant-dollar basis, the value of permits fell 4.8 per cent to $34.7 billion.
Non-residential construction intentions accounted for the largest share of the quarterly decline, falling $1.7 billion to $13.8 billion. Statistics Canada said it was the largest quarterly decrease in the sector since the second quarter of 2020.
The institutional component was the main contributor, declining $1.5 billion to $4.6 billion after reaching a record high in the second quarter of 2026. The earlier increase was led by construction intentions for a new hospital in Ontario.
Commercial construction intentions declined $168.1 million in the third quarter, while industrial permits fell $94.5 million.
Residential construction intentions, meanwhile, were virtually unchanged at $21 billion.
A $92.5-million decline in single-family construction intentions, which fell to $7.2 billion, was largely offset by an $80.3-million increase in the multi-unit component, which reached $13.8 billion.
Nationwide, 71,300 single-family and multi-family housing units were authorized for construction in the third quarter, on a not seasonally adjusted basis.
That was down from 78,500 units authorized during the same quarter in 2025.