Statistics Canada reports that in the first quarter of 2024, the pace of growth in construction costs for residential and non-residential buildings showed a notable slow down, reaching the lowest rates since mid-2020. The average cost for residential building construction rose by 0.8%, a decrease from the previous quarter’s 1.1% increase, while non-residential buildings also recorded a 0.8% rise, consistent with the preceding quarter’s growth.

Year-on-year, the costs for residential buildings in the 11 major Canadian metropolitan areas increased by 5.2%, with Halifax seeing the highest increase at 8.1%. Non-residential construction costs grew by 4.6%, with Moncton leading at 7.9%. Factors such as skilled labor shortages, rising material costs, and updated building regulations have been influencing these cost adjustments.

Among residential projects, single-detached houses faced the most significant price pressures, followed by townhouses. Notably, masonry and earthworks saw the most substantial increases in costs, indicating specific areas where the market pressures are most pronounced. In contrast, some sectors like electrical and conveying equipment saw slight declines.

For non-residential construction, costs were mostly on the rise, except in a few categories like electrical and integrated automation, which experienced minor reductions. This reflects a varied landscape of cost pressures across different building types and construction stages. This information is crucial for stakeholders in the construction industry to navigate the challenges and plan effectively for future projects.

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