August 5, 2026
SUMMARY
Ontario’s ICI construction investment reached $2.88 billion in May 2026, up slightly from both last year and the previous month. Commercial buildings accounted for the largest share of investment. Industrial and institutional spending increased from the previous month, while commercial spending edged down a little. Office buildings, schools, and warehouses continued to attract the most investment.
ONTARIO ICI CONSTRUCTION INVESTMENT
Total investment in industrial, commercial, and institutional (ICI) construction reached $2.88 billion in May 2026. This was 0.6% higher than May 2025 and 1.0% higher than the previous month.
The commercial sector accounted for the largest share of investment at $1.38 billion (48.1%). Institutional construction totalled $800 million (27.9%), while industrial construction reached $690 million (24.0%).
Compared with the previous month, industrial investment increased by 2.1% and institutional investment rose by 2.2%. Commercial investment decreased slightly by 0.3%.
Compared with May 2025, institutional construction was the only sector to decline, falling 3.4%. Industrial investment increased 4.4%, while commercial investment rose 1.1%.
PERFORMANCE BY TYPE OF BUILDINGS
Office buildings remained the largest building category in May 2026, followed by schools and warehouses.
Investment in office buildings reached $444.1 million. This represented 15.4% of total ICI investment and 32.1% of commercial construction spending. Office investment increased 1.0% from the previous month but was 5.0% lower than May 2025.
Warehouse investment totalled $306.3 million. Spending was 4.0% lower than the previous month but 20.6% higher than a year earlier.
Laboratory construction remained a small category but continued to grow quickly. Investment reached $13.2 million, up 227.3% from a year earlier.
Within the industrial sector, factory construction received the highest investment at $297.3 million. This was 0.5% higher than the previous month but 0.4% lower than May 2025. Transportation projects totalled $218.5 million, up 2.7% from the previous month and 27.5% from a year earlier, the strongest annual growth among industrial building types.
In the institutional sector, schools received the highest investment at $332.1 million, an increase of 2.3% from the previous month. Schools remained the second-largest building category overall, although investment was 10.7% lower than a year ago. Barrie, Guelph, London, and Oshawa continued to see strong school construction activity.
Investment in welfare homes was $206.9 million, down 3.1% from the previous month. Hospital investment increased to $155.5 million, up 9.8% from the previous month.
INVESTMENT TRENDS BY CENSUS METROPOLITAN AREA (CMA)
Belleville recorded the strongest year over year growth in May 2026. Investment increased 69.5%, mainly because of commercial projects, especially recreation facilities.
Barrie and Thunder Bay also posted strong gains, with investment increasing 57.9% and 29.8%, respectively. Brantford recorded 27.7% growth, while Oshawa increased 20.2%.
Barrie’s growth was driven by institutional construction, with commercial projects also performing well. Thunder Bay’s increase was mainly supported by industrial projects. Brantford saw growth across all three sectors, led by commercial construction. Toronto’s gains were largely driven by industrial projects.
Peterborough and Kingston recorded the largest declines. Investment fell 53.2% in Peterborough and 37.0% in Kingston.
____________________________
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
