OTTAWA — Construction intentions rose sharply in May as new data from Statistics Canada shows a significant increase in the total value of building permits, driven largely by Ontario’s booming institutional projects.

The total value of building permits issued nationwide climbed by $1.4 billion, up 12% from April, reaching $13.1 billion in May. A major driver behind this spike was a new hospital project in the Niagara region, which pushed Ontario’s institutional permit values up by a striking $1.3 billion month-over-month.

This hospital alone helped lift the national institutional component to a record $2.5 billion — the highest value ever recorded for that category.

The non-residential sector led the overall increase, jumping by $1.2 billion to $5.6 billion. While institutional permits surged, commercial construction posted a more moderate gain of $87.8 million to $2.3 billion, led by Quebec. Ontario, however, saw commercial permit values dip by $71.9 million, easing back from its robust performance in April.

On the industrial side, construction intentions fell by $117.2 million in May.

The residential sector stayed positive thanks to strong growth in British Columbia’s multi-family housing market, which offset drops in single-family housing. Residential permits rose by $169.8 million to $7.5 billion nationwide.

Vancouver’s multi-family segment added nearly $700 million, rebounding strongly after an April decline. Nationally, multi-family permit values increased by $194.8 million to $4.9 billion, even as Ontario’s multi-family permits fell by $382.8 million, partly offsetting B.C.’s growth.

Single-family permits edged down by $25 million to $2.6 billion, mainly due to Ontario’s drop, although seven provinces and two territories recorded increases that softened the decline.

Overall, 21,000 new multi-unit dwellings and 4,400 new single-family homes were authorized for construction in May, marking a slight month-over-month decline in total units despite the rise in dollar value.

The record-setting institutional spending underlines the importance of public sector investment in driving construction activity at a time when Canada’s housing needs remain urgent and infrastructure upgrades are high on local agendas.

Industry watchers will keep an eye on whether this momentum carries through the summer, especially as new institutional and multi-family projects aim to balance ongoing residential supply shortages in fast-growing urban centers.

To learn more about building permit trends and detailed regional breakdowns, visit Statistics Canada’s official portal at www.statcan.gc.ca.

Originally reported by Adam Freill in On-site mag.