Construction costs surge in Q2 2024

Construction costs in Canada rose significantly in Q2 2024, according to Statistics Canada. The Building Construction Price Index showed a 4.2% year-over-year increase for residential buildings and a 4.3% rise for non-residential structures in the 11-census metropolitan area composite.

Calgary and Saskatoon led the spike, with residential costs up 7.3% and non-residential up 7%, respectively. Compared to Q1 2024, residential construction costs grew 0.8%, while non-residential costs increased 1.1%.

Key factors include skilled labor shortages, rising labor rates, interest rate pressures, and building code updates. Masonry and utilities saw the highest increases in residential construction costs, while factories and warehouses led non-residential gains.