October 21, 2026
SUMMARY
Ontario’s industrial, commercial and institutional (ICI) building permit value fell to $1.54 billion in August 2026, down 29.2% from July and marking the second-lowest monthly level of the year. Permit values also remained approximately 11.7% below August 2025.
The monthly decline was driven by lower institutional and commercial permit values, while industrial construction recorded a modest increase. Most Ontario census metropolitan areas (CMAs) also saw declines, although some smaller markets recorded gains.
PROVINCIAL OVERVIEW
Ontario’s total ICI building permit value reached $1.54 billion in August 2026, down 29.2% from $2.17 billion in July. This was the second-lowest monthly value recorded so far this year, after February.
Permit values declined in both the institutional and commercial sectors, while industrial construction recorded a slight increase.
Institutional permits fell 44.3% to $410 million, reaching their lowest monthly level of 2026. Commercial construction recorded $780 million in permits, down 29.7% from July. Industrial construction was the only sector to record an increase, with permit values rising 6.5% to $350 million.
Compared with August 2025, when total ICI permit values stood at approximately $1.74 billion, August 2026 was about 11.7% lower.
REGIONAL HIGHLIGHTS
Most Ontario CMAs recorded lower ICI building permit values in August.
Toronto remained the largest market, recording $713.7 million in permits, down 30.6% from July and approximately 20% below its level a year earlier.
Outside Toronto, Hamilton recorded the highest permit value at $69.1 million, down from $107.7 million in July. Brantford followed at $57.1 million. Institutional and commercial projects accounted for most of Hamilton’s activity, while commercial construction represented the largest share in Brantford.
Despite the overall decline, several CMAs recorded monthly gains. Thunder Bay and Belleville saw the largest percentage increases, while Guelph, St. Catharines-Niagara, Oshawa, Kitchener-Cambridge-Waterloo and Barrie also recorded higher permit values than in July.
WHAT IS BEING BUILT?
Commercial construction accounted for the largest share of Ontario’s ICI building permit value in August at 50.9%, followed by institutional construction at 26.5% and industrial construction at 22.6%.
Schools and educational buildings recorded the highest permit value at $235.3 million, down 12.3% from July. Office buildings followed closely at $233.2 million, a decline of 8.7% from the previous month.
Trade and services buildings recorded $200.1 million in permits, with retail and wholesale outlets accounting for approximately 62.3% of activity within this category.
Agricultural buildings recorded the strongest monthly growth among building types, with permit values rising 56.8% to $62.2 million. Along with service stations and warehouses, agricultural buildings were the only three building types to record an increase in permit values in August.
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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
