Canadian Residential and Non-Residential Construction Costs Increased in Q3
Building construction price indexes, third quarter 2023
Statistics Canada (StatCan) reported on Wednesday (11-1-23) that in 2023Q3, residential building construction costs increased 1.0%. This follows a 2.0% increase in Q2. Non-residential building construction costs were 0.9% higher in Q3, following a 1.6% increase in the previous quarter.
StatsCan notes that the Q3 increase marked the slowest quarterly growth in residential building construction costs since 2020Q2 and in non-residential building construction costs since 2020Q4.
Year-over-year, construction costs for residential buildings in the 11 census metropolitan areas (CMAs) composite increased 6.0%, while non-residential building construction costs saw a similar increase of 5.9%. Toronto led the way with year-over-year growth in construction costs for residential buildings of 10.0%, while Moncton led the way with 12.3% growth for non-residential buildings.
StatCan reported that skilled labor shortages and the resulting increases in wage rates, availability of materials, and interest rates were all key factors impacting the construction sector in Q3.
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