Key Takeaways
- Total building permits fell 4.1% to $12.9 billion in September.
- Residential permits dropped 5.8% to $7.8 billion, led by multi-family plans in B.C. and Alberta.
- Ontario was the only large province to gain, up 6.6% to $5.3 billion.
A cooler month for construction plans
The total value of building permits issued in Canada fell by $552.8 million, or 4.1%, to $12.9 billion in September 2026, according to Statistics Canada. The figures are seasonally adjusted. In constant dollars, which account for price changes, permit values declined 4.5% from August but remained 1.9% higher than a year earlier.
Multi-family housing drove the decline
Residential building permits fell $475.7 million, or 5.8%, to $7.8 billion. Multi-family residential permits accounted for most of the decline, falling $529.3 million to $5.1 billion. British Columbia recorded a $292.1-million decrease, while Alberta saw a $186.8-million drop. Single-family permits moved in the opposite direction, increasing $53.6 million to $2.7 billion, supported by a $103.3-million gain in Ontario. Non-residential permits declined $77.1 million to $5.1 billion. Institutional permits fell $171.5 million to $1.6 billion, led by Quebec, while industrial permits increased $90.9 million to $1.3 billion, supported by gains in Ontario and Nova Scotia.
Ontario bucked the broader decline
Ontario's total permit value rose 6.6% to $5.3 billion in September. Other major provinces recorded declines: Quebec: Down 8.3% to $2.6 billion. British Columbia: Down 10.3% to $1.8 billion. Alberta: Down 15.3% to $1.7 billion.
The third quarter showed broader weakness
Across the third quarter of 2026, building permits totalled $38.8 billion, down 3.6% from the previous quarter. Non-residential permits fell $1.7 billion to $13.8 billion, marking the largest quarterly decline since the second quarter of 2020. The decrease followed a record second quarter that included construction intentions for a new hospital in Ontario. Building permits covered approximately 71,300 housing units during the quarter, compared with 78,500 units a year earlier.
The Twikup Take
September's decline was concentrated in multi-family housing, particularly in British Columbia and Alberta. Ontario and single-family permits provided some offset, but the quarterly figures suggest weaker construction intentions overall. One month's decline does not establish a lasting housing slowdown. October's building permit figures, scheduled for release on December 11, will provide another indication of whether the weakness continued. Image: Illustrative image.