Statistics Canada reported that total investment in building construction declined 3.2% to $22.3 billion.
The pullback was led by a sharp $441-million drop in multi-unit residential construction, which fell in six provinces and all three territories. Ontario accounted for the bulk of that decline, down $410 million.
Single-family construction also weakened, falling $282 million nationally, with notable declines in Ontario (-$181 million) and Alberta (-$121 million).
The downturn in residential investment comes as housing markets across the country remain subdued, with both buyers and builders grappling with high interest rates and affordability challenges. On a seasonally adjusted basis, residential construction has now declined in four of the past five months.
Non-residential sector holds steady
Non-residential building investment was relatively flat in April, edging down just 0.3% to $6.8 billion. That included declines in both commercial (-1.0%) and industrial (-0.8%) sectors, offset by a 1.3% rise in institutional investment.
Commercial construction was down in seven provinces and two territories, again led by Ontario (-$23.2 million). Industrial investment fell most in Quebec, while Alberta led the growth in institutional spending, which rose by $13.1 million in the province.
Housing construction lags despite growing urgency
April’s data adds to mounting evidence of a slowdown in residential construction, particularly in the multi-unit segment.
Building permits, a leading indicator of future building activity, fell 6.6% in April, driven by an 11.6% drop in residential construction intentions. That was followed by a subdued May housing starts report, with Canada’s annual pace of starts edging down slightly to 279,510 units. Starts fell sharply in key markets like Toronto (-22%) and Vancouver (-10%).
All of this is happening just as the country’s housing needs are growing. CMHC estimates Canada will need to build up to 4.8 million new homes over the next decad, or roughly 430,000 to 480,000 each year, to bring affordability back to 2019 levels. That’s about twice the pace of current construction, underscoring the growing gap between what’s needed and what’s actually getting built.
Statistics Canada’s building investment figures reflect the value of construction work done on residential and non-residential structures, including both new construction and significant renovations.
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Last modified: June 23, 2025
