Canadian Building Construction Costs Rise in Q3

On Tuesday, Statistics Canada (StatCan) reported that building construction costs rose in Q3.

Residential building construction costs increased 0.6% in Q3, following a 1.0% rise in Q2. Nonresidential construction costs also advanced 0.6% after a 1.8% increase in the previous quarter.

Year-over-year, construction costs for residential buildings in the 15-census metropolitan area (CMA) composite were up 2.6% in Q3, while nonresidential costs rose 3.4%.

Tariff pressures and supply-chain disruptions continue to affect Canada’s construction sector, StatCan said. New US tariffs on steel, aluminum, and other metal materials—and Canada’s corresponding counter-tariffs—have raised costs for materials in categories such as structural steel and metal fabrications. Respondents noted that these reciprocal tariffs added to metal-related price pressures. Builders also reported longer lead times and fewer reliable sourcing alternatives.

StatCan also noted that shortages of skilled labor and rising wages continue to drive up costs in several regions. Activity remained steady in the Prairies and Quebec, while slower demand and project delays were reported in Ontario and British Columbia.