Canadian Residential and Nonresidential Construction Costs Rise in Q4

On Tuesday, Statistics Canada (StatCan) released its Building Price Index for 2025Q4, reporting higher construction costs across both residential and nonresidential buildings.

Residential building construction costs increased 0.4% in Q4, following a 0.6% increase in Q3. Nonresidential building construction costs rose 0.5%, after a 0.7% increase in the previous quarter.

Year-over-year, construction costs for residential buildings in the 15-census metropolitan area composite rose 3.0%. Over the same period, nonresidential building construction costs increased 4.1%.

With residential building starts declining across most of the country in Q4—partly reflecting seasonal factors—price pressures moderated, although costs remained elevated due in part to rising material prices.

Builders reported a decline in bidding activity amid the market slowdown, but labor shortages and elevated wages continued to place upward pressure on construction costs, particularly in skilled trades. Builders also cited difficulties sourcing suitable substitute materials for certain product groups, creating acute price pressures in Q4.