Prices Increase For Residential Building Construction

Prices for residential building construction rose 2.4 per cent in the third quarter, the largest gain since the index was introduced in the first quarter of 2017, says Statistics Canada. All census metropolitan areas (CMAs) covered in the survey reported higher residential building construction prices. The cost of non-residential building construction increased 0.4 per cent. It says supply chains for lumber continued to be strained as both supply and demand pressures drove lumber and other wood product prices up in the third quarter. Contractors also reported increased retail demand for lumber, with retailers selling directly to homeowners for do-it-yourself projects. However, as the seasonality of the construction industry slows demand in the fourth quarter, suppliers may have the opportunity to catch up on production and complete outstanding orders. This may help some contractors catch up on existing projects currently constrained under the new work conditions, as well as by ongoing labour and material shortages.