Canada’s Building Costs Rise at Slower Pace in Late 2025

Canada’s Building Costs Rise at Slower Pace in Late 2025

Canada: Building construction costs in Canada continued to increase in the fourth quarter of 2025, although the rate of growth eased compared with earlier in the year, according to data from Statistics Canada. Residential construction costs rose 0.4 per cent quarter on quarter, while non-residential costs increased 0.5 per cent. On an annual basis, residential costs across the fifteen census metropolitan areas increased 3 per cent, and non-residential costs rose 4.1 per cent. The agency attributed the slower pace of increases partly to reduced residential building starts and softer bidding activity, while noting that labour shortages, wage pressures and higher material prices continued to influence costs.

Cost movements varied by region and construction category. Residential construction costs increased most in Québec City and Montréal, while Calgary, Edmonton and Vancouver recorded declines. By division, metal fabrications, finishes and heating, ventilation and air conditioning posted the largest quarterly residential increases, while electrical and several material-related categories declined. In the non-residential sector, London, Ontario, recorded the highest quarterly increase, while Vancouver was the only market to show a slight decrease. Structural steel and metal fabrications led non-residential cost increases, reflecting ongoing price pressures linked to import tariffs, while electrical work was the only category to record a decline.

Source: Ontario Construction News