May 29, 2026
SUMMARY
Ontario’s industrial, commercial, and institutional (ICI) building permits rebounded strongly in March 2026, reaching $2.38 billion. The increase was driven mainly by industrial activity, especially factory and plant construction in Toronto. While quarterly permit values were slightly below the previous quarter, industrial and institutional activity remained solid across several regions.
PROVINCIAL OVERVIEW
Ontario’s total ICI building permits reached $2.38 billion in March 2026, up 125% from February and close to January levels.
The rebound was led by the industrial sector, which rose by $940 million to $1.14 billion, the highest monthly level since August 2024. Factory and plant construction drove most of the increase, with Toronto accounting for about 83% of Ontario’s industrial permit value.
There may also be further growth in the coming months following recent Ontario budget announcements, including incentives for machinery and processing assets and investments in transit infrastructure. However, since the budget was released late in March, its impact is not yet reflected in the current data.
Industrial permits were up 470% from February and nearly three times higher than a year earlier. Commercial permits rose to $0.79 billion, while institutional permits reached $0.44 billion. All three sectors increased month over month, although institutional activity remained slightly below March 2025 levels.
Compared with Q4 2025, total ICI permit values in Q1 2026 were down 9%. However, activity remained stronger than Q1 2025 levels, as much of last year’s growth occurred later in the year.
Building permit data can vary significantly from month to month, as a few large projects can heavily influence totals.
REGIONAL HIGHLIGHTS ACROSS ONTARIO
Toronto recorded $1.5 billion in permits in March, roughly triple February levels, with industrial construction leading the increase.
Outside Toronto, Ottawa-Gatineau posted the highest permit value at $155.3 million, followed by Oshawa at $86.6 million and Hamilton at $71.8 million. Commercial projects drove activity in Ottawa-Gatineau, while institutional projects led growth in Oshawa and Hamilton.
Guelph recorded the fastest monthly growth at 480%. Other strong gains were seen in Belleville, Ottawa-Gatineau, Greater Sudbury, and London. The largest declines were reported in St. Catharines-Niagara, Kingston, and Thunder Bay.
On a quarterly basis, Toronto’s permit values fell 2.5% from Q4 2025. Hamilton posted the strongest growth, with permit values rising 118% to $274 million, driven mainly by commercial projects.
Oshawa also performed well, recording the second-highest permit value outside Toronto at $230.4 million. Peterborough stood out as permit values doubled from the previous quarter.
Most other CMAs saw declines from Q4 2025, particularly Belleville-Quinte West, Thunder Bay, London, Guelph, and Brantford.
WHAT IS BEING BUILT?
Industrial construction accounted for about 48% of total ICI permit value in March.
Factories and plants recorded the highest permit value at $970.4 million and saw the largest monthly increase, rising 24 times from February levels.
Office buildings followed at $321 million, while schools reached $206.4 million. Welfare homes also saw strong growth, increasing sevenfold to $113.3 million.
Meanwhile, laboratories, churches, transportation projects, and service stations recorded declines from the previous month.
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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
