Residential Construction Costs Rise

Residential building construction costs increased 5.6 per cent in the first quarter of 2022, the highest increase since the second quarter of 2021, says Statistics Canada. Non-residential building construction costs were up 2.6 per cent in the quarter. Contractors surveyed attributed part of the growth in building construction costs to the rise in labour costs and a surge in the number of vacancies for construction trades which has contributed to increased wages in these occupations. In addition, amid rising fuel prices, contractors cited that a larger share of their expenses were now allocated to the transportation of their building materials. Costs to construct residential buildings increased the most in Calgary, AB (+6.9 per cent). Moncton, NB (+2.1 per cent) experienced the lowest quarterly price increases in residential building construction in the first quarter of 2022.