Ontario Construction News staff writer
Building construction costs rose again in the fourth quarter of 2025, but the pace of increases slowed compared with earlier in the year, Statistics Canada says.
The agency reported residential building construction costs rose 0.4 per cent in the fourth quarter, following a 0.6 per cent increase in the third quarter. Non-residential building construction costs increased 0.5 per cent, down from a 0.7 per cent rise in the previous quarter.
Year over year, residential construction costs in the 15-census metropolitan area composite were up three per cent in the fourth quarter, while non-residential construction costs increased 4.1 per cent.
Statistics Canada said price pressures moderated as residential building starts declined across most of the country in the fourth quarter, partly due to seasonal factors. Costs remained elevated, however, in part because of rising material prices.
Builders reported lower bidding activity as market conditions softened. At the same time, labour shortages and elevated wages continued to put upward pressure on construction costs, particularly in skilled trades.
The agency also said builders faced challenges sourcing suitable substitute materials for certain product groups, leading to acute price pressures for some products during the quarter.
Residential construction costs increased in most census metropolitan areas. Québec City posted the largest quarterly increase at 2.1 per cent, followed by Montréal at 1.7 per cent. Regina and Saskatoon also recorded notable gains of 1.5 per cent and 1.4 per cent, respectively.
Calgary and Edmonton both saw residential construction costs decline by 0.7 per cent, while Vancouver recorded a decrease of 0.3 per cent. These were the only CMAs to post declines in the fourth quarter.
By division, metal fabrications recorded the largest quarterly increase in residential construction costs at 1.7 per cent. Finishes rose 1.3 per cent and heating, ventilation and air conditioning increased 1.2 per cent.
In contrast, costs fell in the electrical division, down 0.7 per cent, as well as wood, plastics and composites, down 0.6 per cent, and concrete, down 0.3 per cent.
In the non-residential sector, construction costs increased the most in London, Ont., rising 2.3 per cent in the fourth quarter. Saskatoon followed with a 1.3 per cent increase.
Moncton reported growth of 0.8 per cent, while Ottawa posted a 0.6 per cent increase.
Vancouver was the only CMA to record a decline in non-residential construction costs, edging down 0.1 per cent. Victoria showed no change.
At the composite level, non-residential construction costs increased across most divisions. Structural steel rose 1.7 per cent and metal fabrications increased 1.6 per cent, reflecting continued upward price pressure linked to import tariffs.
The electrical division was the only non-residential category to record a decline, falling 1.7 per cent in the quarter.
