For updates on how the U.S tariffs impact the Vaughan business community, visit vaughanbusiness.ca/tariffs.
2025 Q2 Building Permit Rankings
HIGHLIGHTS
- By the end of the second quarter of 2025, Vaughan ranked third nationally by the number and value of industrial building permits.
- Vaughan remains the most significant industrial market in York Region, surpassing 105 million square feet of industrial inventory in the second quarter of 2025.
- Vaughan’s non-residential permits totaled more than $363 million in permit value at the end of the second quarter.
- Vaughan is also a leader in Ontario across non-residential development, ranking top ten in the province by value and number of non-residential permits.
- When looking specifically at commercial development, the city ranks sixth by number and eighth by value of commercial building permits in Ontario.
- In Ontario, Vaughan ranks in the top ten by number of institutional building permits.
- The industrial market in the Greater Toronto Area softened in the second quarter of 2025, with year-over-year asking net rent declining by 6.7 per cent.
- The Greater Toronto Area commercial market continues its gradual recovery, with 2.2 million square feet of office space currently under construction, the majority of it in Toronto.
- Non-residential building construction costs rose 1.6 per cent in the second quarter, following a one per cent increase in the previous quarter.
ANALYSIS
The data received from Statistics Canada ranks the number of building permits and the value of building permits for the quarter. As an economic indicator, the number of building permits and the value of building permits measure current demand in both residential and non-residential real estate markets and estimate the future performance of the construction industry. Building permit values are a key indicator of the local economy’s strength, as well as a predictor of population and employment growth.
By the end of the second quarter of 2025, Vaughan ranked third nationally by the number and value of industrial building permits.
Vaughan’s industrial sector continues to thrive, and the performance of the industrial development market at the end of the second quarter reflects the city’s position as a top market in Canada. At the end of the second quarter of 2025, Vaughan ranked third nationally by both the number and value of industrial building permits.
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Top Ten Canadian Industrial Markets by Number of Permits, Quarter Two 2025[1] |
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| 1. Mississauga | 6. Montreal |
| 2. Toronto | 7. Winnipeg |
| 3. Vaughan | 8. Edmonton |
| 4. Calgary | 9. London |
| 5. Brampton | 10. Markham |
| Top Ten Canadian Industrial Markets by Value of Permits, Q2 2025[2] | |
| 1. Brampton | 6. Halifax |
| 2. Toronto | 7. London |
| 3. Vaughan | 8. Mississauga |
| 4. Calgary | 9. Edmonton |
| 5. Montreal | 10. Markham |
Vaughan remains the most significant industrial market in York Region, surpassing 105 million square feet of industrial inventory in the second quarter of 2025.
Vaughan maintains its position as the most significant industrial market in the York Region, with a growing industrial inventory of more than 105 million square feet. The city represented 61 per cent of the total industrial inventory in York Region at the end of the second quarter[3].
Vaughan’s non-residential permits totaled more than $363 million in permit value at the end of the second quarter.
Until the end of the second quarter in 2025, Vaughan’s non-residential permits totaled more than $363 million in permit value[4]. Non-residential permits include those for industrial, commercial, and institutional permits.
Vaughan is also a leader in Ontario across non-residential development, ranking top ten in the province by value and number of non-residential permits.
In the second quarter of 2025, Vaughan ranked sixth by number and eighth by value of non-residential building permits in Ontario. Vaughan continues to maintain its position as a leader in non-residential development among Ontario municipalities.
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Top Ten Ontario Non-Residential Markets by Number of Permits, Q2 2025[5] |
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| 1. Toronto | 6. Vaughan |
| 2. Mississauga | 7. London |
| 3. Ottawa | 8. Markham |
| 4. Brampton | 9. Kitchener |
| 5. Hamilton | 10. Guelph |
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Top Ten Ontario Non-Residential Markets by Value of Permits, Q2 2025[6] |
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| 1. Toronto | 6. London |
| 2. Brampton | 7. Markham |
| 3. Mississauga | 8. Vaughan |
| 4. Hamilton | 9. Kitchener |
| 5. Ottawa | 10. Guelph |
When looking specifically at commercial development, the city ranks sixth by number and eighth by value of commercial building permits in Ontario.
In the second quarter of 2025, Vaughan ranked sixth by number of permits and eighth by value of permits for commercial development among municipalities in Ontario. Vaughan’s commercial permit value for the year up to the end of June 2025 was $76,386,662[7].
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Top Ten Ontario Commercial Markets by Number of Permits, Q2 2025[8] |
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| 1. Toronto | 6. Vaughan |
| 2. Mississauga | 7. London |
| 3. Ottawa | 8. Markham |
| 4. Brampton | 9. Kitchener |
| 5. Hamilton | 10. Guelph |
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Top Ten Ontario Commercial Markets by Value of Permits, Q2 2025[9] |
|
| 1. Toronto | 6. Markham |
| 2. Mississauga | 7. Kitchener |
| 3. Hamilton | 8. Vaughan |
| 4. Brampton | 9. London |
| 5. Ottawa | 10. Oakville |
In Ontario, Vaughan ranks in the top ten by number of institutional building permits.
In the second quarter of 2025, Vaughan ranks 10th overall in Ontario by the number of institutional building permits. Vaughan’s institutional permit value for the year up to the end of June 2025 was $6,866,997[10].
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Top Ten Ontario Institutional Markets by Number of Permits, Q2 2025[11] |
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| 1. Toronto | 6. Guelph |
| 2. Mississauga | 7. Kitchener |
| 3. Ottawa | 8. Brampton |
| 4. London | 9. Markham |
| 5. Hamilton | 10. Vaughan |
MARKET TRENDS
The industrial market in the Greater Toronto Area softened in the second quarter of 2025, with year-over-year asking net rent declining by 6.7 per cent.
Industrial absorption declined from 2 million square feet in the first quarter, to 80,000 square feet in the second quarter of 2025[12]. The average asking net rent in the Greater Toronto Area dropped below $17 per square foot for the first time since the third quarter of 2022, marking the largest quarterly decline in the past five years. Developers are proceeding more cautiously, weighing the risks of new construction starts against evolving market demand.
The Greater Toronto Area commercial market continues its gradual recovery, with 2.2 million square feet of office space currently under construction, the majority of which is in Toronto.
Net absorption remains healthy in the second quarter of 2025, standing at just under 6,000 square feet, with a net positive result, driven by larger deals in the Suburban regions. Many tenants remain drawn to suburban locations for cost efficiency, proximity to staff, and the flexibility to support hybrid work[13]. Subleasing continues to serve as a valuable bridge for companies refining their long-term workplace strategies.
Non-residential building construction costs rose 1.6 per cent in the second quarter, following a one per cent increase in the previous quarter.
The tariffs imposed by the United States and the countermeasures implemented by Canada on construction-related imports have increased instability in both the pricing and availability of certain materials. Builders reported that uncertainty because of the tariffs continued to create challenges in securing contracts, contributing to delays in project starts, along with labour shortages[14].
NEXT STEPS
Economic Development will continue to monitor economic trends, including non-residential market conditions, and leverage its available channels to provide timely updates to the business community. These include the department’s LinkedIn Channel, eNewsletters, and the Insights page on vaughanbusiness.ca.
Staff continue to connect with local businesses through Economic Development’s corporate calling program to better understand business sentiment towards local market conditions and other business challenges.
Economic Development monitors economic trends, including non-residential market conditions. To stay up to date on the latest, following us on LinkedIn at Vaughan Economic Development or visit vaughanbusiness.ca/Insights
DEFINITIONS
Industrial buildings are defined as structures used in the processing or production of goods, or those related to transportation and communication.
Commercial buildings are defined as structures used in the trade or distribution of goods and services and include office and retail buildings.
Institutional buildings are structures designed to house public and semi-public services, such as those related to health and welfare, education, or public administration, as well as buildings used for religious purposes.
Residential buildings are defined as structures intended for private occupancy whether on a permanent basis or not. Dwellings are divided into the following types: single-family, mobile, cottage, semi-detached, row house and apartment building.
Non-Residential buildings are all structures not intended for private occupancy whether on a permanent basis or not. This includes buildings used for institutional, commercial, or industrial purposes.
[1] Q2 2025 Building Permit Data Report. Statistics Canada.
[2] Q2 2025 Building Permit Data Report. Statistics Canada.
[3] Q2 2025 Toronto Industrial Market Report. Colliers.
[4] Summary of Construction Activity to June 30, 2025. City of Vaughan.
[5] Q2 2025 Building Permit Data Report. Statistics Canada.
[6] Q2 2025 Building Permit Data Report. Statistics Canada.
[7] Summary of Construction Activity to June 30, 2025. City of Vaughan.
[8] Q2 2025 Building Permit Data Report. Statistics Canada.
[9] Q2 2025 Building Permit Data Report. Statistics Canada.
[10] Summary of Construction Activity to June 30, 2025. City of Vaughan.
[11] Q2 2025 Building Permit Data Report. Statistics Canada.
[12] Q2 2025 Toronto Industrial Market Report. Colliers.
[13] Q2 2025 Office Market Report. Colliers
[14] Building Construction Price Indexes, Q2 2025. Statistics Canada