Canadian Construction Price Indices Rise in Q2

Statistics Canada (StatCan) recently released its Construction Price Indices for Q2. Residential building construction costs increased 0.8% in Q2, following a 1.0% increase in Q1. Nonresidential building construction costs rose 1.1% in Q2, following a 1.0% increase in Q1.

The growth in residential building construction costs continued to abate in Q2, while nonresidential 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 Q2, while nonresidential building construction costs saw an increase of 4.3%.

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