07:00 AM EST, 02/12/2025 (MT Newswires) -- Canadian residential building permits posted a record month in December, noted Bank of Montreal (BMO).

Granted, the data is seasonally adjusted, and the winter can get wonky, but there's been a clear improvement in

permit activity over the past year, said the bank.

Falling interest rates have likely helped bring more projects to this phase, stated BMO.

At the same time, there has been an ongoing increase in

purpose-built rental activity -- indeed, most of the recent activity was in the apartment segment in Toronto and Vancouver.

In a vacuum, the Bank of Canada's easing cycle should now be firming up housing demand which, eventually, translates into higher construction activity. Those wheels are in motion, pointed out the bank.

However, there are few pockets -- such as small Toronto condos -- with a still-large overhang and the economic

uncertainty surrounding U.S. trade is real.