Between 2022 and 2025, the construction price of residential and non-residential buildings in Canada has grown at the same pace. The price of both types of buildings was roughly ***** percent higher in the last quarter of 2025 than in 2024, which is the year when the index base was set at 100. Nevertheless, that only considers the cost of buildings in 15 selected metropolitan areas in Canada. Toronto was by far the metropolitan region with the highest construction costs in Canada.

What determines construction costs? The growth rate of the construction price of different types of buildings tends to follow similar trends to some extent. For example, price growth rates in Canada for most types of buildings were more moderate in 2024 than in previous years. However, those figures show a lot of disparity, with the cost of building a high rise apartment building growing much faster than that of other types of buildings. This might be because the construction costs depend on elements such as the location, materials, and complexity of the building, which tend to be quite different for each type of building.

Lumber building materials in Canada In 2024, Canada was the world’s second-largest exporter of wood building materials such as veneer sheets, parquet flooring, particleboard, laminated wood, and builders’ joinery and carpentry. Forestry, logging, and processing wood into ready-to-use materials are important industries in the Canadian economy. High price growth rates of building materials impact negatively the construction industry as their activities become more expensive. However, the forestry and logging industry benefited from the cost of lumber rising in 2020 and 2021. In the past years, the price of lumber, however, has fallen again.

The global market for FSC-certified wood products is experiencing robust growth, driven by increasing consumer demand for sustainable and ethically sourced materials. The rising awareness of deforestation and its environmental consequences, coupled with stricter regulations and corporate sustainability initiatives, are key factors fueling this market expansion. While precise market sizing data is unavailable, we can infer significant growth based on the general wood products market and the accelerating adoption of FSC certification. Considering a global wood products market valued at several hundred billion dollars annually, even a conservative estimate places the FSC-certified segment at a substantial size, likely in the tens of billions, given the increasing demand for sustainability. This segment is characterized by a healthy CAGR (Compound Annual Growth Rate), likely exceeding the overall wood products market average due to the premium associated with FSC certification. The residential sector currently dominates application, followed by commercial construction, with other applications (e.g., furniture manufacturing) showing promising growth potential. Lumber remains the largest product type, followed by paper and pulp, with wood products (plywood, etc.) representing a significant and growing share. Key players such as GreenFirst Forest Products, Cascades Canada, and Canfor are actively investing in FSC certification and sustainable forestry practices, further consolidating the market's growth trajectory. Geographic distribution reflects global environmental consciousness, with North America and Europe currently holding the largest market shares due to higher environmental awareness and stringent regulations. However, Asia-Pacific, particularly China and India, are emerging as significant growth markets, driven by increasing urbanization and rising disposable incomes. While the high initial cost of FSC certification can present a restraint for some smaller players, the long-term benefits, including improved brand image, access to environmentally conscious consumers, and potential regulatory advantages, are increasingly outweighing this initial investment. The market is likely to witness further consolidation in the coming years, with larger companies acquiring smaller certified producers to expand their market share. The continued development and improvement of traceability systems within the supply chain will be crucial in ensuring the authenticity and integrity of FSC-certified wood products, further driving market expansion.

Keeping the lights on across industries and geographies, the electrician industry in Canada is a key component of the economy at large. With demand dispersed among many downstream construction markets, industry revenue is expected to have declined at a CAGR of 3.2% to $29.8 billion through the end of 2025, including an expected growth of 2.7% in 2025 alone as along with interest rate cuts and rising consumer confidence. Volatile costs have driven down average industry profit over the last five years. Over the past five years, electricians in Canada have dealt with fluctuating interest rates, and construction materials cost inflation, which has had varying impacts on downstream residential and nonresidential construction markets. At the height of the pandemic, demand from nonresidential construction wavered as economic activity was broadly disrupted. While demand from nonresidential construction returned as the economy reopened, residential demand fell as interest rates rose. While the Bank of Canada began cutting rates in 2024 and have continued to do so into 2025, they are still relatively high and have kept residential construction activity from reaching height seen earlier in the current period. As residential construction consistently accounts for over 60.0% of industry revenue, the electrical industry has yet to reach the heights it saw in 2020. Industry performance is expected to improve in the coming years. The value of nonresidential construction will continue to recover, supporting the industry. As interest rates continue to fall and consumer sentiment improves, demand from residential construction is set to return to growth. Surging immigration will add to the already significant demand for housing. Still, electrical contractors will continue to struggle with high costs (possibly exacerbated by a looming trade war with the US) and labour shortages. Overall, industry revenue is expected to climb at a CAGR of 2.2% to reach $33.3 billion in 2030.

Lumber fell to 690.67 USD/1000 board feet on July 31, 2025, down 0.12% from the previous day. Over the past month, Lumber's price has risen 11.49%, and is up 37.84% compared to the same time last year, according to trading on a contract for difference (CFD) that tracks the benchmark market for this commodity. Lumber - values, historical data, forecasts and news - updated on August of 2025.