National overview
Residential building construction costs increased 0.8% in the first quarter, following a 1.1% increase in the previous quarter. Non-residential building construction costs rose 0.8% in the first quarter, following a 0.8% increase in the previous quarter.
This marks the slowest quarterly growth in residential building construction costs since the second quarter of 2020 and the slowest quarterly growth in non-residential building construction costs since the fourth quarter of the same year.
Year over year, construction costs for residential buildings rose 5.2% in the first quarter of 2024 in the 11-census metropolitan area (CMA) composite, while non-residential building construction costs saw a slightly more modest increase of 4.6%. Halifax (+8.1%) led the year-over-year growth in construction costs for residential buildings, while Moncton (+7.9%) led the growth of non-residential buildings.
Skilled labour shortages and the resulting increases in labour rates, availability of materials, interest rate pressure, and building codes updates were all reported as key factors impacting the construction sector.
Contact information
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