The Great Canadian Real Estate Slowdown is set to continue into the future. Statistics Canada (Stat Can) data shows the value of building permits fell in October. The drop in permits shows less building activity is planned, especially for residential building. It sounds like bad news, but it might not be. Falling land and building costs mean projects are viable at much lower prices. This can help restore more affordable housing, as long as rates normalize at these levels.

Canadian building permits continued to fall, making its second consecutive decline. Total permit values fell to $10.0 billion in October, down 1.4% from the previous month. In real terms, this worked out to a 0.9% decline, according to Stat Can. Permit values remain elevated compared to pre-2020, so this isn’t an alarming throttle. However, it’s worth noting that the drop in permit value is entirely due to housing.