Canadian Residential and Nonresidential Building Construction Costs Increase in 2023Q4
Building construction price indexes, fourth quarter 2023
On Thursday, Statistics Canada (StatCan) reported that residential building construction costs increased 0.9% in 2023Q4, following a 1.2% increase in Q3. Year-over-year, construction costs for residential buildings in the 11-census metropolitan area (CMA) composite increased 6.0%.
In all of 2023, the 11-CMA composite for residential building construction increased 7.6% on annual average basis—a deceleration from the double-digit increases reported in 2022. StatCan noted that cost increases varied greatly across CMAs, with Toronto leading the way, up 12.7%, followed by Halifax, up 8.2%, and Vancouver, up 7.8%.
Nonresidential building construction costs increased 0.7% in Q4, following a 1.3% increase in Q3. Year-over-year, construction costs for nonresidential buildings in the 11-CMA composite increased 5.4%.
In all of 2023, the 11-CMA composite for nonresidential building construction increased 7.1% on an annual average basis. This follows a record yearly increase of 12.5% in 2022. Costs climbed across all CMAs in 2023, with Moncton leading the way with a 12.1% increase, followed by Ottawa and Vancouver both posting 8.4% gains.
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