According to Statistics Canada, prices for the construction of new residential buildings rose more than those for new non-residential buildings in the first quarter of 2018. Increases for both building types were driven, in part, by higher costs for masonry work, as well as for materials including steel, lumber and concrete.
Contractor prices rose 1.8 percent for the construction of new residential buildings in the first quarter, following a 1.4 percent increase in the previous quarter. Higher prices for the construction of new low-rise apartment buildings (+2.1 percent) led the gain.
Among the 11 surveyed census metropolitan areas (CMAs), prices for new residential building construction rose the most in Winnipeg (+7.3 percent). Higher labor and material costs, as well as the introduction of a new municipal fee, contributed to the increase. Other notable price increases occurred in Vancouver (+2.2 percent) and Toronto (+1.6 percent).
Prices charged by contractors for new residential building construction increased 7.3 percent in the first quarter compared with the same quarter in 2017.
In the first quarter of 2018, prices for new non-residential building construction increased 0.9 percent for the 11 CMAs included in the survey. Across building types, prices rose the most for the construction of new industrial buildings (+1.4 percent).
Prices charged by contractors for new non-residential building construction rose 2.7 percent over the 12-month period ending in the first quarter of 2018. Higher prices in Vancouver (+4.7 percent) and Montréal (+4.1 percent) led the gain.