Canadian Building Construction Prices Edge Higher in Q1

On Tuesday, Statistics Canada (StatCan) released its Building Construction Price Indices for Q1.

Residential building construction costs increased 0.6% in Q1, following a 0.5% rise in 2025Q4. Nonresidential building construction costs rose 0.5%, matching the previous quarter’s increase.

Year-over-year, construction costs for residential buildings rose 2.8% across the 15-census metropolitan area (CMA) composite, while nonresidential construction costs increased 3.6%.

StatCan said the construction sector faced subdued demand for new projects in Q1, alongside ongoing material sourcing constraints and persistent skilled labor shortages in select trades.

In Ontario, builders reported reduced bidding activity and delayed projects as buyers waited for clarity on HST rebates and potential GST relief measures. In contrast, more active regions such as Atlantic Canada and the Prairies—where building permit values rose 16.8% and 14.7%, respectively, from 2024 to 2025—continued to face labor shortages as a primary constraint. StatCan also noted that retaliatory tariffs on steel and related products contributed to higher costs for metal-based inputs nationwide.