Between 2022 and 2024, 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 six percent higher in the last quarter of 2024 than in 2023, 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 2023 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 2023, 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.

Ambulatory healthcare was the type of building with the highest construction costs in Ontario (Canada) in 2023. The cost of that type of building ranged from 7,110 to 8,750 Canadian dollars per square meter. Townhouses with mid-end specifications were, along with warehouses, among the cheapest buildings to construct, even though the townhouse sale price in Canada was much higher in 2023 than in a decade earlier. On the other side of the residential spectrum, the construction cost of high-rise buildings with mid-end specifications could reach up to 5,370 Canadian dollars per square meter. The housing sector in Ontario The fast population growth in Toronto, the main city in Ontario, has put pressure on its housing market. From 2001 to 2022, the number of people living in Canada’s largest city increased by over 37 percent. During the past years, house prices in Ontario rose at a similarly fast pace. Combined, these elements signal a strong demand for homes in Toronto and Ontario as a whole. The construction sector has responded to this trend: In 2022, most housing starts in Canada took place in the province of Ontario. That same year, EllisDon Corporation, with headquarters in Mississauga (Ontario), was the second-largest contractor in Canada. One of its largest residential/mixed-use projects under development is the 489-539 King St. West Development, in Toronto. Construction cost in North America Building construction costs in Quebec, the second most populous province in Canada after Ontario, had a similar cost range: Ambulatory healthcare buildings were the most expensive, and warehouses were the cheapest to build. However, enclosed malls and higher education buildings were significantly more expensive in Quebec than in Ontario. Across the border, the cities with the highest residential construction costs in the U.S. were San Francisco for multi-family housing, and New York City for single-family housing. Meanwhile, Los Angeles, San Francisco, and New York had the highest hotel construction costs in the U.S.

Building construction price indexes (BCPI) by type of building. Quarterly data are available from the second quarter of 1982. The table presents quarter-over-quarter and year-over-year percentage changes for various aggregation levels. The base period for the index is (2017=100).

One of the building types with the highest construction costs in British Columbia (Canada) in 2023 were healthcare ambulatory care buildings. The construction of those buildings cost between 9,610 and 10,850 Canadian dollars per square meter. That year, construction costs for residential health care buildings could reach up to 7,540 Canadian dollars per square meter. In 2023, around 234,700 people were employed in the construction sector in British Columbia.

Building construction price indexes (BCPI) by type of building and construction division. Quarterly data are available from the first quarter of 1981. The table presents data for the most recent reference period and the last four periods. The base period for the index is (2023=100).

In late 2023, data centers were the type of building with the highest construction costs in Vancouver. That year, construction costs of hospitals stood between 670 and 850 Canadian dollars per square foot. Light and heavy industry buildings had the lowest construction costs. These costs are similar to those of other big Canadian cities, such as Montreal.

Canada Construction Price Index: Non Residential Building: Structures: Institutional data was reported at 153.100 1997=100 in 2007. This records an increase from the previous number of 140.600 1997=100 for 2006. Canada Construction Price Index: Non Residential Building: Structures: Institutional data is updated yearly, averaging 130.800 1997=100 from Dec 2003 (Median) to 2007, with 5 observations. The data reached an all-time high of 153.100 1997=100 in 2007 and a record low of 116.800 1997=100 in 2003. Canada Construction Price Index: Non Residential Building: Structures: Institutional data remains active status in CEIC and is reported by Statistics Canada. The data is categorized under Global Database’s Canada – Table CA.EA015: Construction Price Index: 1997=100.

The construction costs of higher education buildings in Quebec (Canada) in 2023 varied between 3,820 and 6,110 Canadian dollars per square meter. Meanwhile, the costs for the construction of a secondary school could reach up to 3,290 Canadian dollars per square meter that year. These prices tended to be slightly lower than in the Canadian province of Ontario.

Building construction price indexes (BCPI), relative importance, annual. Annual data are available from 2017. The table presents data for the most recent annual reference period.

Archived - Non-residential building construction price index (NRBCPI), type of building of major subtrade groups. Quarterly Data are available from the first quarter 1981. The table presents data for the most recent reference period and the last four periods. The base period for the index is (2002=100).

Ontario's construction costs 2023, by building type Published by Fernando de Querol Cumbrera, Dec 10, 2024 Ambulatory healthcare was the type of building with the highest construction costs in Ontario (Canada) in 2023. The cost of that type of building ranged from 7,110 to 8,750 Canadian dollars per square meter. Townhouses with mid-end specifications were, along with warehouses, among the cheapest buildings to construct, even though the townhouse sale price in Canada was much higher in 2023 than in a decade earlier. On the other side of the residential spectrum, the construction cost of high-rise buildings with mid-end specifications could reach up to 5,370 Canadian dollars per square meter. The housing sector in Ontario The fast population growth in Toronto, the main city in Ontario, has put pressure on its housing market. From 2001 to 2022, the number of people living in Canada’s largest city increased by over 37 percent. During the past years, house prices in Ontario rose at a similarly fast pace. Combined, these elements signal a strong demand for homes in Toronto and Ontario as a whole. The construction sector has responded to this trend: In 2022, most housing starts in Canada took place in the province of Ontario. That same year, EllisDon Corporation, with headquarters in Mississauga (Ontario), was the second-largest contractor in Canada. One of its largest residential/mixed-use projects under development is the 489-539 King St. West Development, in Toronto. Construction cost in North America Building construction costs in Quebec, the second most populous province in Canada after Ontario, had a similar cost range: Ambulatory healthcare buildings were the most expensive, and warehouses were the cheapest to build. However, enclosed malls and higher education buildings were significantly more expensive in Quebec than in Ontario. Across the border, the cities with the highest residential construction costs in the U.S. were San Francisco for multi-family housing, and New York City for single-family housing. Meanwhile, Los Angeles, San Francisco, and New York had the highest hotel construction costs in the U.S.

In 2023, the construction prices of non-residential buildings reached growth rates of over five percent in several Canadian cities. Construction costs for commercial buildings in Moncton grew by over 12 percent in 2022 and 2023. While construction costs for that type of building in Quebec rose by 5.5 percent in 2023. The residential construction costs in these Canadian cities also increased that year.

Commercial building construction contractors have endured declines. Interest rate hikes plunged business sentiment, decreasing expansion projects and hindering new commercial construction. Also, the transition to remote and hybrid work environments has hampered demand for office building construction, with office rental vacancies reaching a 30-year high in the fourth quarter of 2024. Industry revenue has been declining at a CAGR of 0.2% over the past five years to total an estimated $40.0 billion in 2025, including an estimated gain of 1.5% in 2025 as interest rate cuts begin to encourage new construction. Contractors have managed to expand profit from lows in 2020 but surging wage costs have strained considerable profit growth. Some of the growth for commercial building construction contractors has been price-based because of rising material costs for commercial buildings. This trend has been particularly true with office building construction, which increased as a share of revenue despite square footage under construction being at its lowest point in twenty years in the fourth quarter of 2024. Still, growth in additions and improvements spending, particularly from hotels, restaurants and bars, have buoyed the performance of contractors. Also, new construction in markets like warehouses, indoor recreational buildings and retail and wholesale outlets has provided contractors with avenues for growth. Commercial building construction contractors will enjoy solid growth. Continued rate cuts through 2025 will incentivize new construction. One market that will greatly benefit contractors is new hotel construction. While other markets will improve, office building construction may lag as vacancy rates remain high and 90.0% of active office building construction is set to be complete in 2025. Contractors will struggle to expand profit as labour shortages persist and push up wage costs. Tariffs may hike construction material prices, particularly HVAC equipment, potentially disincentivizing downstream construction expenditures. Also, contractors will have to adapt to some evolving trends, like the increased use of modular construction and changing building codes to improve commercial building sustainability. Modular construction techniques will help contractors combat labour shortages and higher wage costs because they are less labour-intensive. Overall, industry revenue is forecast to expand at a CAGR of 1.9% to total an estimated $44.0 billion through the end of 2030.

Canada Construction Price Index: Apartment Building: Edmonton data was reported at 175.400 1997=100 in 2007. This records an increase from the previous number of 148.800 1997=100 for 2006. Canada Construction Price Index: Apartment Building: Edmonton data is updated yearly, averaging 132.200 1997=100 from Dec 2003 (Median) to 2007, with 5 observations. The data reached an all-time high of 175.400 1997=100 in 2007 and a record low of 118.300 1997=100 in 2003. Canada Construction Price Index: Apartment Building: Edmonton data remains active status in CEIC and is reported by Statistics Canada. The data is categorized under Global Database’s Canada – Table CA.EA015: Construction Price Index: 1997=100.

Building construction price indexes (BCPI), relative importance by type of building. Annual weights are available from 2017.

Canada Construction Price Index: Non Residential Building: Structures: Commercial data was reported at 157.900 1997=100 in 2007. This records an increase from the previous number of 143.400 1997=100 for 2006. Canada Construction Price Index: Non Residential Building: Structures: Commercial data is updated yearly, averaging 132.800 1997=100 from Dec 2003 (Median) to 2007, with 5 observations. The data reached an all-time high of 157.900 1997=100 in 2007 and a record low of 118.400 1997=100 in 2003. Canada Construction Price Index: Non Residential Building: Structures: Commercial data remains active status in CEIC and is reported by Statistics Canada. The data is categorized under Global Database’s Canada – Table CA.EA015: Construction Price Index: 1997=100.

Data centers and hospitals were the types of buildings with the highest construction costs in Montreal (Canada) in late 2023. Constructing medium quality residential buildings cost between 275 and 325 Canadian dollars per square foot. That was significantly more expensive than townhouses. The construction costs in Vancouver were lower than in Montreal for many types of buildings.

Data centers were buildings with the highest construction costs in Toronto (Canada) in late 2023. That year, the cost of a single-family home could range between 250 to 780 Canadian dollars per square foot. Hospitals were also among the most expensive buildings, while light and heavy industry buildings were relatively low construction costs.

Canada Construction Price Index: Apartment Building: Calgary data was reported at 183.600 1997=100 in 2007. This records an increase from the previous number of 154.000 1997=100 for 2006. Canada Construction Price Index: Apartment Building: Calgary data is updated yearly, averaging 134.800 1997=100 from Dec 2003 (Median) to 2007, with 5 observations. The data reached an all-time high of 183.600 1997=100 in 2007 and a record low of 120.700 1997=100 in 2003. Canada Construction Price Index: Apartment Building: Calgary data remains active status in CEIC and is reported by Statistics Canada. The data is categorized under Global Database’s Canada – Table CA.EA015: Construction Price Index: 1997=100.

This table contains 216 series, with data for years 1981 - 2008 (not all combinations necessarily have data for all years). This table contains data described by the following dimensions (Not all combinations are available): Geography (8 items: Seven census metropolitan area composite; Ottawa-Gatineau; Ontario part; Ontario/Quebec; Montréal; Quebec; Halifax; Nova Scotia ...), Type of building (6 items: Office; Warehouse; Shopping centre ...), Major sub-trade group (5 items: Total; major sub-trade groups; Mechanical trades; Structural trades; Architectural trades ...).