April 16, 2026
SUMMARY
Building permit values in Ontario dropped sharply in February after a very strong January. The decline was mainly due to fewer large institutional projects. Commercial activity stayed steady, while industrial permits also fell. Monthly results can vary a lot, so this drop does not necessarily signal a long-term slowdown.
OVERVIEW
Total industrial, commercial, and institutional (ICI) building permits in Ontario reached $1.06 billion in February 2026. This was down 54.2% from January.
The drop comes after a strong start to the year. In January, higher permit values were driven by the institutional sector. In February, that same sector led the decline, followed by industrial.
Institutional permits totaled $0.22 billion. This is about 81% lower than January and 14.8% below February last year. Ontario also saw the largest drop in institutional permits among all provinces.
Industrial permits fell to $0.2 billion, down 57.3% from last month. However, they were close to the same level as a year ago. Commercial permits were more stable at $0.64 billion, similar to January.
It is important to note that building permit data can change a lot from month to month. A few large projects can significantly raise or lower the totals.
REGIONAL HIGHLIGHTS ACROSS ONTARIO
Toronto recorded $492.2 million in permits in February, down $1.23 billion from January. All three sectors declined, with the largest drop in institutional projects. This was mainly due to a major medical facility worth over $800 million that was approved in January.
Outside Toronto, Oshawa had the highest permit value in February at $87 million. This was followed by St. Catharines–Niagara at $69.1 million and Hamilton at $63.9 million. In all three areas, commercial projects led activity. In Oshawa, commercial permits made up 85% of the total, and in Hamilton about 84%.
St. Catharines–Niagara saw the fastest month over month (MOM) growth at 480%. Other strong gains were seen in Brantford (217%), Kingston (181%), and Peterborough (143%).
The largest declines were reported in Barrie, Guelph, Greater Sudbury, and Toronto.
WHAT IS BEING BUILT?
Commercial construction made up about 60% of total permit value in February.
Office buildings had the highest value among all building types at $222.9 million. Hotels and restaurants followed at $131.7 million, and schools at $119.2 million.
Hotels and schools also saw the biggest monthly increases, rising 206% and 170%. Service stations were also up by 166.5%.
On the other hand, several categories declined. These included medical buildings, welfare homes, government buildings, laboratories, and transportation projects. The drop in medical buildings was mainly due to the large project approved in January, which makes February look weaker by comparison.
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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
