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Feb 9, 2023

Material Costs Continue To Impact Construction

Residential building construction costs increased one per cent in the fourth quarter, following a 2.5 per cent increase in the previous quarter, says Statistics Canada. Non-residential building construction costs rose 1.6 per cent in the fourth quarter, following a 2.1 per cent increase in the previous quarter. Skilled labour shortages and cost of materials, particularly fuel, concrete, and steel, were reported by contractors as key issues across the construction industry. For non-residential construction, availability of materials was also reported as a key issue. Residential building construction costs in the fourth quarter were driven by cost increases in equipment (+2.6 per cent), metal fabrications (+2.4 per cent), and concrete (+2.2 per cent). Costs in the wood, plastics, and composites division (+0.5 per cent) grew at a slower rate compared with previous highs, which can be attributed to the continued decline in lumber prices. Costs to construct residential buildings increased the most in Vancouver, BC (+1.6 per cent), followed by St. John's NL (+1.4 per cent), and Winnipeg, MB (+1.3 per cent).

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