According to Statistics Canada, residential building construction costs increased 0.9 percent in the fourth quarter, following a 1.2 percent increase in the previous quarter. Non-residential building construction costs rose 0.7 percent in the fourth quarter, following a 1.3 percent increase in the previous quarter.
The deceleration observed in the fourth quarter continued the 2023 trend of abating price pressure in both residential and non-residential building construction costs. The fourth quarter marked the slowest quarterly growth since the second quarter of 2020 for residential building construction costs, and the slowest quarterly growth since the fourth quarter of 2020 for non-residential building construction costs.
Year over year, construction costs for residential buildings in the 11-census metropolitan area (CMA) composite rose 6.0 percent in the fourth quarter of 2023, while non-residential building construction costs increased 5.4 percent.
In the fourth quarter, residential building construction costs rose across 10 of the 11 CMAs measured. Calgary and Vancouver saw the largest quarterly increases (each up 1.7 percent). Edmonton (-0.1 percent) was the only CMA to record a decline in residential construction costs.
In the 11-CMA composite, the cost to build townhomes and low-rise apartment buildings (each up 1.0 percent) experienced the strongest increases of all residential buildings in scope for the survey.
Non-residential construction costs decelerate across 7 of 11 census metropolitan areas measured
Costs to construct non-residential buildings increased the most in Winnipeg and Saskatoon (each up 1.0 percent) in the fourth quarter.
Of all non-residential buildings surveyed, the cost to build shopping centers, warehouses, and schools all experienced the same cost pressure (+0.7 percent for each) in the fourth quarter.