Construction costs for both residential and non-residential buildings rose in the fourth quarter of 2024, although not by as much as they did in the quarter before.

Statistics Canada reports that residential building construction costs increased 0.8% for the quarter. This was after an increase of 0.9% in the previous quarter. Meanwhile, non-residential building construction costs rose 0.8% in the fourth quarter, following a 0.6% increase in the previous quarter.

Year over year, construction costs for residential buildings in the 15-census metropolitan area (CMA) composite rose 3.7% in the fourth quarter, while non-residential building construction costs increased 3.8%.

Builders noted that in the fourth quarter the industry continued to face cost pressure from skilled labour shortages and related labour rate increases, alongside building code changes and availability of land for development.

General requirements division leads residential construction cost growth

In the fourth quarter, residential building construction costs rose across all 15 CMAs measured. Regina (+2.5%) saw the largest quarterly increase, followed by Calgary (+1.8%), while Vancouver (+0.2%) experienced the lowest quarterly growth in residential construction costs.

At the division-level for residential building construction, the general requirements (+1.6%) and finishes (+1.5%) divisions recorded the largest quarterly increases in the fourth quarter. The structural steel framing (-0.7%) and masonry (-0.3%) divisions experienced quarterly price declines.

Toronto leads non-residential construction cost growth

Costs to construct non-residential buildings increased the most in Toronto (+1.1%) in the fourth quarter, followed by Québec (+0.9%), Ottawa (+0.8%) and Montréal (+0.8%).

Halifax (+0.2%) and St. John's (+0.2%) recorded the smallest increases, while the non-residential building construction composite price index in Calgary experienced no price movement.