Commercial Real Estate · Historical report

Canadian Building Construction Prices Rose in First Quarter of 2026

Statistics Canada reported quarterly increases in residential and non-residential building construction prices, with results varying across metropolitan areas and construction divisions.

By Carter Hayes · Source dated April 28, 2026 · Published July 22, 2026

Key takeaways

Residential building construction costs increased 0.6% in the first quarter of 2026, after rising 0.5% in the previous quarter.
Non-residential building construction costs rose 0.5% for a second consecutive quarter.
In the 15-CMA composite, residential construction costs were 2.8% higher than a year earlier, while non-residential costs were up 3.6%.
Montréal recorded the largest quarterly residential increase, while Halifax posted the largest non-residential increase.

Quarterly construction-price increases continued

Residential building construction costs increased 0.6% in the first quarter of 2026, following a 0.5% increase in the prior quarter. Non-residential building construction costs rose 0.5%, matching the increase recorded in the previous quarter.

Year over year, residential building construction costs increased 2.8% in Statistics Canada’s 15-census-metropolitan-area composite, while non-residential building construction costs increased 3.6%.

Statistics Canada described first-quarter conditions as including subdued demand for new projects, material sourcing constraints and skilled-labour shortages in select trades. Builders in Ontario reported reduced bidding activity and delayed housing developments, while builders in the Atlantic and Prairie regions identified skilled-labour shortages as a primary challenge.

Residential prices increased across all tracked CMAs

Residential building construction costs rose in every census metropolitan area measured. Montréal had the largest quarterly increase at 2.6%, followed by Victoria at 1.6%, Québec at 1.5% and Regina at 1.4%.

The smallest residential changes were recorded in Winnipeg, up 0.2%; Toronto, up 0.1%; and Calgary, unchanged. At the division level, conveying equipment had the largest increase, rising 2.5%, followed by metal fabrications at 2.1%, plumbing at 1.5% and structural steel framing at 1.3%.

Concrete, masonry and fire suppression posted residential division-level declines during the quarter.

Halifax led non-residential price growth

Halifax recorded the largest quarterly increase in non-residential building construction costs, at 1.6%. London and Calgary each rose 1.2%, while Québec increased 1.1% and Moncton rose 1.0%.

Winnipeg and Ottawa were the only CMAs to report non-residential construction-cost declines, falling 0.2% and 0.3%, respectively. Across measured non-residential divisions, metal fabrications rose 2.3% and structural steel increased 1.9%, the largest increases reported.

Statistics Canada attributed upward price pressure in those two divisions to implemented retaliatory tariffs. Heating, ventilation and air conditioning declined 1.0%, while fire suppression fell 7.1%.

What the index measures

The building construction price indexes track changes in prices contractors charge to construct specified new residential and non-residential buildings in 15 census metropolitan areas. The index covers four residential building types and six non-residential building types.

Contractor prices reflected in the index include materials, labour, equipment, overhead and profit. The measure excludes value-added taxes as well as land, land assembly, building design, land development and real estate fees.

The series is published quarterly and is not seasonally adjusted. Data for the previous quarter may be revised with each release.