March 13, 2026
SUMMARY
Ontario recorded $2.31 billion in industrial, commercial and institutional (ICI) building permits in January 2026, up 20.8% from December. The increase was largely driven by strong institutional activity, especially major medical projects in Toronto. While industrial permits remained stable, commercial permits declined compared with the previous month.
OVERVIEW OF ONTARIO’S JANUARY 2026 BUILDING PERMIT ACTIVITY
Total industrial, commercial and institutional building permits in Ontario reached $2.31 billion in January 2026, marking a strong start to the year. Permit values were 20.8% higher than in December 2025.
The overall increase was mainly driven by the institutional sector. Institutional permit values reached $1.18 billion, about 1.5 times higher than the previous month and 2.5 times higher than the same time last year. Ontario also recorded the largest increase in institutional permit values among all provinces.
Industrial building permits remained relatively stable at $0.47 billion, similar to December levels. In contrast, the commercial sector declined by 31.8%, with permit values falling to $0.66 billion. Ontario recorded the largest absolute drop in commercial permit values among all provinces.
January also marked the first time since June 2025 that institutional permit values exceeded those in the commercial sector.
REGIONAL HIGHLIGHTS ACROSS ONTARIO
Toronto recorded $1.7 billion in building permits in January, an increase of $678.7 million from the previous month. This growth was largely driven by the institutional sector. Across Ontario, institutional permit values increased by $698.4 million. The Toronto Census Metropolitan Area (CMA) alone recorded $993.4 million in institutional permit value. As per Statistics Canada, the rise was supported by the approval of a new medical facility valued at over $800 million.
Excluding Toronto, which typically records the highest permit values, Hamilton showed the strongest performance with $138.3 million in permits. This around four times higher than the previous month and about 3 times higher than January last year, largely driven by commercial projects.
Barrie followed with $72.7 million in building permits, 22.4% higher than the previous month. Most of the value came from institutional projects, while the industrial sector recorded the main monthly increase.
Oshawa, with $56.7 million, and Kitchener–Cambridge–Waterloo, with $32.5 million, also recorded positive month over month growth.
Several CMAs saw notable declines in permit values. The largest month over month decreases were recorded in Brantford (-94.8%), Thunder Bay (-86.2%), London (-81.1%), St. Catharines–Niagara (-79.3%), and Guelph (-78.3%). These declines were mainly driven by a reduction in institutional permit activity.
WHAT IS BEING BUILT?
The largest project category in January was medical institutions, with a total value of about $900 million, including $800 million in Toronto.
Institutional buildings accounted for 51.1% of Ontario’s total ICI permit value in January 2026, with medical facilities making up about 76% of institutional permits.
Outside the medical category, the transportation sector saw the largest monthly increase. Permit values rose by $140 million, bringing the total to $322.6 million.
Other leading building types by permit value included office buildings ($158.6 million), welfare homes ($133.4 million), warehouses ($131.6 million), and recreational buildings ($123.9 million). However, permit values for all of these categories were lower than in December.
Several building types recorded monthly gains. These included laboratories, medical buildings, churches, government buildings, transportation projects, and mining and agriculture facilities.
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FOR MORE INFORMATION, CONTACT:
Gargi Bharti
Economic and Research Project Lead
Ontario Construction Secretariat (OCS)
180 Attwell Drive, Suite 360, Toronto, ON M9W 6A9
P 416.620.5210
gbharti@iciconstruction.com
