Statistics Canada says municipalities issued $7-billion worth of building permits in May, up 7.4 per cent from April and the highest level since May 2007.
The jump followed a 4.4 per cent decline in April.
The agency says the increase was largely due to higher construction intentions for institutional buildings in Alberta, British Columbia and Saskatchewan and for multi-family dwellings in British Columbia.
The value of residential building permits increased 8.5 per cent to $4.1-billion, following four consecutive monthly declines.
Non-residential construction intentions rose 6 per cent to $2.9-billion after a 7-per-cent decline the previous month.
The value of building permits increased in seven provinces in May, led by British Columbia, Saskatchewan and Alberta.