Building permits fall nationally as Ottawa pushes housing

According to data released by Statistics Canada on Wednesday, in November 2025, the total value of building permits issued in Canada decreased by $1.8 billion. This was a 13 percent decline from October and a four percent decline on a year-over-year basis.

Sector breakdown

Of that $1.8 billion decrease, $1 billion came from the residential sector, and the remaining $800 million came from the non-residential sector.

Accounting for the residential permits decline was for multi-family dwellings, which saw a 17 percent decrease, while single-family dwellings only saw a 0.1 percent decline. Within the non-residential field, institutional projects, such as hospitals and schools, saw a decline in building permits issued by 20 percent. Commercial buildings and industrial projects experienced a 15 percent and five percent decline, respectively.

Information courtesy of Statistics Canada.

Among the provinces, Manitoba and Ontario saw the largest hits, with declines in the 20 percent range. Provinces in the Atlantic region, like Nova Scotia and PEI, and the west, such as BC and Alberta, either remained nominally steady or saw increases in building permits.

Economic picture likely driving construction stagnation

This decline in permits nationally, especially in the biggest provinces of Ontario and Quebec, could be part of a broader trend towards business restraint in the current fiscal environment, with higher construction costs and financing challenges. This can dampen the economic situation further, as the unemployment rate in Canada rose to 6.8 percent in December, 0.3 percent higher than in November.

Prime Minister Carney has pledged to build affordable housing through the Build Canada Homes agency. The results of the $13 billion program remain to be seen.