National overview
In the third quarter, residential renovation costs increased 0.6%, following a 0.7% increase in the second quarter.
The province of Quebec (+0.9%) experienced the largest quarterly cost increase in the third quarter, followed by Alberta (+0.7%). Newfoundland and Labrador (+0.3%) experienced the smallest quarterly increase.
Across the 15 census metropolitan areas (CMAs) measured, Montréal (+1.0%) experienced the strongest quarterly growth in the third quarter, while Québec (+0.8%) followed closely. St. John's (+0.3%) and London (+0.1%) experienced the smallest quarterly increases.
While the cost to complete each renovation project varied significantly by project type and location, the roofing project group experienced the strongest quarterly increase in the third quarter, followed by the windows and doors project group.
Respondents to the Construction Contractors Survey noted gradual improvements in the availability of skilled trade workers and easing material cost pressures, contributing to slower growth in renovation construction costs in the third quarter. Due to the specialized skills required to complete each type of renovation project, cost pressures for individual renovation projects remained highly sensitive to local market dynamics.
Renovation cost pressures accelerate in Montréal and Ottawa, while continuing to slow across rest of the country in third quarter
Montréal and Ottawa were the only CMAs measured that saw quarterly residential renovation costs accelerate in the third quarter, with the remaining 13 CMAs all reporting decelerating quarterly growth in residential renovation costs.
Montréal saw residential renovation costs increase 1.0% in the third quarter, following a 0.3% increase in the previous quarter. Similarly, Ottawa saw costs rise 0.6% in the third quarter, following a 0.3% increase in the previous quarter.
The residential renovation cost growth in Montréal in the third quarter was led by increased costs for solar panel installations (+6.1%), wood floors (+4.9%) and furnaces (+3.3%). The increase in Ottawa was led by carpeting (+3.2%), windows (+2.4%) and wood floors (2.2%).
Note to readers
The Residential Renovation Price Index (RRPI) measures the quarterly change over time in the prices that renovation contractors charge to complete a range of residential renovation projects. The RRPI is composed of eight separate project groups, containing a total of 37 individual projects, and is measured across 15 census metropolitan areas (CMAs).
The contractor's prices include the value of all materials, labour, equipment, overhead and profit required to construct each project. They exclude value added taxes and any costs for project design.
The price movements reflected in the index represent the average changes in prices reported by contractors in each respective CMA. The prices, however, may not necessarily reflect the price changes of the contracts that were ultimately accepted in a bidding process.
With each release, data for the previous quarter may have been revised. The index is not seasonally adjusted.
Methodology
Price data are obtained predominately from the Construction Contractors Survey and supplemented by several administrative data sources.
To aggregate the index, project group weights are derived from the Survey of Household Spending, while the relative importance of each CMA is derived from renovation building permit data.
A detailed description of the methodology can be found in the Technical Guide for the Residential Renovation Price Index (RRPI).
Reference
Data table: 18-10-0286-01.
- Note: some data tables may best be viewed on desktop.
Definitions, data sources and methods: survey number 5413.
Previous release: Residential Renovation Price Index, second quarter 2024
Contact information
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