Building Construction Price Indexes, Third Quarter 2023

November 6, 2023

National overview

Residential building construction costs increased 1.0% in the third quarter, following a 2.0% increase in the previous quarter. Meanwhile, non-residential building construction costs rose 0.9% in the third quarter, following a 1.6% increase in the previous quarter.

This marked the slowest quarterly growth in residential building construction costs since the second quarter of 2020 and in non-residential building construction costs since the fourth quarter of the same year.

Year over year, construction costs for residential buildings in the 11-census metropolitan area (CMA) composite rose 6.0% in the third quarter of 2023, while non-residential building construction costs saw a similar increase of 5.9%. Toronto (+10.0%) led year-over-year growth in construction costs for residential buildings, while Moncton (+12.3%) led growth for non-residential buildings.

Skilled labour shortages and the resulting increases in wage rates, availability of materials, and interest rate pressure were all reported as key factors impacting the construction sector.

Chart 1 
Building construction price indexes, quarterly change, third quarter of 2023
Chart 1: Building construction price indexes, quarterly change, third quarter of 2023

Atlantic provinces report largest increases in residential construction costs

In the third quarter, residential building construction costs rose in 9 of the 11 CMAs measured. St. John’s (+2.2%) saw the largest quarterly increase, followed by Halifax (+1.8%). Ottawa (-0.2%) was the only CMA to record a decline in residential construction costs.

In the 11-CMA composite, the cost to build high-rise apartment buildings (+1.7%) grew the most of all residential buildings in scope of the survey, followed by single-detached houses (+1.0%).

In overall residential building construction divisions, conveying equipment (+3.2%) and masonry (+3.1%) recorded the largest quarterly increases in the third quarter. Communications (-0.8%), which includes telecommunications and cabling products, and wood, plastics and composites (-0.6%) experienced quarterly price declines.

Rising equipment costs lead the increase in non-residential construction costs

Costs to construct non-residential buildings increased the most in Moncton and Saskatoon (each up 1.7%), followed by Vancouver (+1.2%) in the third quarter.

Of all non-residential buildings surveyed, the cost to build office buildings (+1.1%) rose the most in the 11-CMA composite, followed by bus depots, shopping centres, and warehouses (each up 1.0%) in the third quarter.

Non-residential building construction costs increased across most divisions, with conveying equipment (+2.1%) seeing the largest increase, followed by general requirements and equipment (each up 1.6%). Communications (-0.4%) and fire suppression (-0.1%) saw cost declines.

Source

Related Articles


Changing Scene

  • Electromate Certified as a Great Place to Work Once Again

    Electromate Certified as a Great Place to Work Once Again

    Electromate is proud to announce that it has again been certified as a Great Place to Work after a thorough, independent analysis conducted by the Great Place to Work Institute Canada. This certification is based on direct feedback from employees, as part of an extensive and anonymous survey about their workplace experience. The recognition highlights… Read More…

  • Gescan Announces Exciting ABB Motion Distribution Partnership

    Gescan Announces Exciting ABB Motion Distribution Partnership

    Recently, Gescan was excited and proud to announce its new strategic distribution partnership with ABB Motion in Manitoba and Saskatchewan. This collaboration brings together ABB’s drive technology and Gescan’s trusted distribution network, delivering more energy-efficient, high-performance motor control solutions to the Prairies. Read More…


Peers & Profiles