July 30, 2024 – Statistics Canada reports residential building construction costs increased 0.8% in the second quarter this year, following a 1.0% increase in the previous quarter.

Non-residential building construction costs rose 1.1% in the second quarter, following a 1.0% increase in the previous quarter.

The growth in residential building construction costs continued to abate in the second quarter, while non-residential building constructions costs accelerated slightly.

Year-over-year, construction costs for residential buildings in the 11 census metropolitan area (CMA) composite rose 4.2% in the second quarter, while non-residential building construction costs saw an increase of 4.3% (see Table).

Calgary (+7.3%) led year-over-year growth in construction costs for residential buildings, while Saskatoon (+7.0%) was in the lead for non-residential buildings.

Skilled labour shortages and the resulting increases in labour rates, interest rate pressure, and building code updates were all reported as key factors impacting the construction sector in Q2 2024.

In the second quarter, residential building construction costs rose across all 11 CMA measured. Calgary (+1.8%) and Saskatoon (+1.7%) experienced the largest quarterly increases. Toronto (+0.2%) experienced the smallest increase in residential construction costs throughout the quarter.

In the 11-CMA composite, the costs to build a single-detached home, a townhouse and a low-rise apartment building all recorded a 0.9% increase in the second quarter, while the cost to construct a high-rise apartment (+0.6%) saw a slightly smaller increase.

All residential building construction divisions but one experienced an increase in the second quarter.

Masonry (+2.4%) and utilities (+2.2%) led the increases, while structural steel (+0.1%), conveying equipment (+0.1%) and earthwork (+0.1%) had the lowest quarterly increases, and concrete (-0.1%) experienced a decline.

The cost to construct non-residential buildings increased the most in Saskatoon (+2.1%) and Winnipeg (+1.3%) in the second quarter.

Of all non-residential buildings surveyed, the costs to build factories (+1.2%) and warehouses (+1.2%) saw the largest increases in the 11-CMA composite in the second quarter, followed closely by transportation buildings (+1.1%) and offices (+1.1%). Schools rose 0.8%.

Non-residential building construction costs increased across all divisions measured in the second quarter. Conveying equipment (+1.6%) and general requirements (+1.5%) reported the largest increases, while communications (+0.2%), structural steel (+0.6%) and masonry (+0.7%) had the lowest increases.