British Columbia Leads National Surge in Construction Permits for May

Among B.C.’s major metropolitan areas, three of seven reported higher permit volumes compared to March. Vancouver stood out with a remarkable 137.6% monthly increase, offsetting declines in markets like Nanaimo, where permits fell by 57.7%.

This resurgence underscores B.C.’s pivotal role in Canada’s construction activity, with strong demand across both residential and non-residential segments.

Canada’s construction sector showed strong growth in May, with the total value of building permits increasing by 12.0% to a seasonally adjusted $13.1 billion, marking a rebound after two consecutive months of decline. The rise was primarily fueled by a 28.4% surge in non-residential permits, reaching $5.6 billion, driven largely by institutional and government projects—the highest monthly value recorded in four years. Residential permits also saw a modest uptick of 2.3%, totaling $7.5 billion.

British Columbia emerged as a major contributor to the national increase, with building permits soaring by 50.7% in May—a sharp reversal from April’s 44.4% decline. The province’s total permit value reached a seasonally adjusted $2.3 billion, 15.3% above the 12-month average. Year-to-date permit volumes in B.C. were 12.8% higher than the same period in 2023.

Residential Sector Growth

The residential sector played a key role in B.C.’s gains, with permits for multi-unit dwellings skyrocketing by 87.3% (following a 52.2% drop in April). Single-family home permits also increased by 4.1%. Cumulatively, residential permits for the first five months of 2024 were 17.9% higher than the previous year, entirely due to a 21.9% rise in multi-unit projects, while single-family permits remained nearly flat (-0.1%). Industry observers suggest some of this momentum may be tied to developers securing permits ahead of anticipated municipal fee increases.

Non-Residential Sector Expansion

B.C.’s non-residential sector also saw robust growth, with permits rising 11.8% in May. Gains were widespread, including:

Institutional & government permits: +4.1%

Commercial permits: +11.9%

Industrial permits: +60.0%

Year-to-date non-residential permits were 2.2% higher than in 2023.