Investment in Canadian building construction continued its upward trajectory in June, as gains in the residential sector outpaced losses in non-residential activity, according to Statistics Canada.

Overall, total investment in building construction rose by $454.4 million to $22.7 billion for the month. The increase was driven largely by residential construction, which advanced 3.1 per cent over May, while non-residential investment edged down 0.5 per cent. Compared with June 2024, overall construction investment was up 8 per cent, highlighting the industry’s resilience amid broader economic challenges.

For June 2025, residential investment reached $15.9 billion, with multi-unit housing construction continuing to drive growth. Multi-unit projects increased by $362.3 million to $9.1 billion, marking a 4.2 per cent gain. The bulk of this growth came from Quebec and British Columbia, where demand for high-density housing remains strong.

Investment in single-family home construction also rose, climbing $123.0 million to $6.9 billion, a 1.8 per cent increase compared to May. Growth in this segment was most notable in Quebec and Ontario, but seven provinces and two territories contributed to the increase, underscoring broad-based momentum in Canada’s housing market.

On the other hand, the non-residential sector recorded a modest decline, slipping $30.8 million to $6.7 billion. All three subcategories posted decreases:

• Industrial: down 1.9 per cent to $1.4 billion, marking a fifth straight monthly decline, largely driven by losses in Quebec and Ontario.
• Institutional: dipped by $1.8 million to $2.0 billion, with decreases spread across six provinces and three territories, led by Quebec. Increases in Alberta and British Columbia helped offset some of the losses.
• Commercial: fell slightly by $1.7 million to $3.3 billion, with Ontario and British Columbia leading declines, while Quebec provided modest growth.

Looking at the broader picture, second-quarter investment totaled $67.4 billion, virtually unchanged from the previous quarter. Residential investment in Q2 edged up 0.2 per cent to $47.1 billion, fueled by a 1.5 per cent increase in multi-unit projects, even as the single-family component slipped 1.4 per cent.

Meanwhile, non-residential investment decreased 0.6 per cent to $20.3 billion, as weaker industrial and commercial activity outweighed growth in institutional projects.

Year over year, the sector continues to show strength: residential investment climbed more than 10 per cent, while non-residential investment managed a 1 per cent gain.

Analysts note that the sustained demand for multi-unit housing reflects affordability pressures, particularly in major metropolitan regions. With immigration driving population growth, provinces like Quebec, Ontario, and British Columbia are seeing strong demand for both rentals and ownership opportunities in multi-unit developments.

The slowdown in industrial and commercial spending, however, may point to cautious business investment amid uncertain economic conditions and higher borrowing costs. Still, the modest uptick in institutional projects indicates that public-sector spending—particularly in schools, healthcare facilities, and community infrastructure—continues to provide balance in the non-residential market.

Originally reported by Adam Freill in On-Site Magazine.