Canadian Design and Construction Report staff writer
VANCOUVER – Construction costs in British Columbia continue to outpace inflation, according to new data from the BC Construction Association (BCCA), adding pressure to an industry grappling with affordability challenges and growing economic uncertainty. The cost of construction in BC has increased by 4 per cent since last year, ranking 4th highest across Canada.
The association released its Fall 2025 Stat Pack last week, reporting construction material costs jumped four per cent over the past year — double the Bank of Canada’s two-per-cent inflation target.
“While overall inflation in BC and Canada has cooled, we continue to see construction material costs rise at a higher rate in BC’s construction sector,” said BCCA president Chris Atchison. “These pressures are driving construction costs higher at a time when trade uncertainty is already causing many to rethink their investments, creating a secondary impact across the industry.”
Despite rising costs, demand for construction remains strong. Industrial, commercial and institutional building permit values increased nine per cent year-over-year, while multi-unit residential permits rose ten per cent.
The sector continues to play a significant role in the provincial economy, accounting for 9.2 per cent of B.C.’s GDP — roughly $28.5 billion — and employing more than 267,000 people, up 10 per cent from last year. Of those workers, about 191,200 are in trades roles, including more than 10,000 women, a six-per-cent jump in female participation.
However, labour dynamics are shifting. Job vacancies declined 37 per cent to 7,310 over the past year, signalling improved labour supply as the industry continues to expand. The average annual construction wage climbed to $83,667, up 16 per cent year-over-year and 41 per cent over five years.
BC’s construction industry accounts for 9.2 of the province’s total GDP with about 267,400 people relying directly for a paycheque, an increase of 10% since last year. There are 191,200 employed in construction this year, up 14% since 2024.
The number of women in construction trades is 10,134 (5.3%), an increase of about 600 over the past year.
The average yearly wage of BC construction employees is $83,667, an increase of 16% over the past year and 41% over the past 5 years.
The report also states:
- The estimated value of proposed major construction projects in BC: $174B, an increase of 5% since last year, and a decrease of 21% over the past 5 years.
- The estimated value of current major construction projects underway in BC: $158B, a decrease of 7% since last year, and an increase of 41% over the past 5 years.
- Value of industrial, commercial, institutional building permits: $696 million (6-month rolling average), is up 9% compared to last year.
- Multi-unit residential permits (measured as the # of apartment units, on a 6-month rolling average): 3,851, up 10% compared to last year.
- Multi-unit residential construction starts (includes apartment and other unit types, on a 6-month rolling average): 40,822, an increase of 11% over the last year.
“There are many external pressures on our industry that we cannot control, but advocating for prompt payment and fairness across our industry is something we can,” Atchison said. “We look forward to working with the government to advance this legislation and provide contractors with relief from the ongoing pressures created by trade and payment uncertainty.”
Major project activity remains strong, with an estimated $158 billion in construction currently underway across the province, though that is down seven per cent from last year. Proposed projects total $174 billion, up five per cent year-over-year.
