August 18, 2026
SUMMARY
Ontario’s industrial, commercial and institutional (ICI) building permit values reached $11.24 billion in Q2 2026, nearly double the value recorded in Q1. The increase was largely driven by institutional projects, including a major medical project in the Toronto CMA.
Institutional permits accounted for more than half of all ICI permit value during the quarter. Commercial activity also strengthened, while industrial permit values declined. Outside Toronto, Ottawa-Gatineau, London, Hamilton and Peterborough were among the leading markets in Q2.
PROVINCIAL OVERVIEW
Ontario’s total ICI building permit value reached $11.24 billion in Q2 2026, up 98% from $5.68 billion in Q1.
The rebound was mainly driven by the institutional sector. Institutional permit values reached a record $4.82 billion in June, more than offsetting weaker activity in April and May. For the quarter, institutional permits totalled $6.34 billion, up 244% from Q1.
The sharp increase in June was largely tied to a major medical project in the Toronto CMA. As a result, Ontario’s total ICI permit value reached $6.97 billion in June alone.
Commercial and industrial permit values also increased in June, reaching $1.57 billion and $0.58 billion, respectively.
For the full quarter, commercial permit values rose 60% to $3.34 billion. Industrial permits moved in the opposite direction, falling 14% to $1.55 billion.
REGIONAL HIGHLIGHTS
Toronto recorded $5.5 billion in ICI building permits in June. This was up 30.4% from April and more than six times the value recorded in May. The increase was largely driven by institutional permits.
Outside Toronto, Ottawa-Gatineau recorded the highest permit value in June at $289 million, followed by Hamilton at $265.3 million. Institutional projects drove activity in Ottawa-Gatineau, while industrial projects were the main contributor in Hamilton.
Windsor also recorded a notable monthly increase, with permit values rising to about 14 times their May level. While Windsor’s total permit value remained relatively small, the increase was significant in percentage terms.
The largest relative monthly declines were recorded in Peterborough, Barrie, Thunder Bay and Guelph. Monthly building permit data can be volatile, so longer-term trends provide a more complete picture of regional construction activity.
On a quarterly basis, Toronto’s permit value nearly doubled from Q1, reaching $7.36 billion in Q2.
Among the other CMAs shown below, Peterborough recorded the largest percentage increase, supported by a major university infrastructure project. Ottawa-Gatineau reached $533.6 million, while London and Hamilton also recorded strong levels of activity.
Most CMAs saw permit values increase from Q1, with Barrie and Oshawa among the exceptions.
WHAT IS BEING BUILT?
Institutional construction was the main driver of ICI permit activity in Q2. The sector accounted for 56% of total ICI permit value, followed by commercial construction at 30% and industrial construction at 14%.
Medical and hospital projects led all building types, with $4.55 billion in permits during Q2. This was about $3.54 billion higher than in Q1 and was largely responsible for the record level of institutional permit activity. The Toronto medical project was the key contributor.
Schools and educational buildings followed with $1.25 billion in permits.
Warehouses were the third-largest building type in Q2, reaching $1.05 billion, more than three times their Q1 value. Office building permits reached $890.9 million, up $188.5 million from the previous quarter.
Most building types recorded higher permit values in Q2. The main exceptions were factories and plants, laboratories, recreation facilities, welfare and residential-care facilities, and service stations.
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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
