National overview
Renovation costs rise across Prairies and in Quebec in the second quarter of 2025
In the second quarter, residential renovation costs increased 0.9%, following a 0.3% increase in the first quarter.
The province of Saskatchewan (+2.2%) experienced the largest quarterly cost increase, followed by Newfoundland and Labrador (+1.8%) and Manitoba (+1.6%). Saskatchewan (+4.8%) also recorded the largest year-over-year growth, followed by Alberta (+4.1%) and Quebec (+3.5%).
Across the 15 census metropolitan areas (CMAs) measured, Québec (+3.0%) experienced the largest quarterly increase, while Regina (+2.2%) and Saskatoon (+2.2%) trailed closely. While price increases were recorded across all CMAs measured, Toronto (+0.3%) saw the smallest quarterly increase in renovation costs.
Metal price increases drive growth in input costs and renovation costs
Although renovation costs varied by project and location, the import tariffs introduced by the United States and Canada in March, including a 25% tariff by Canada on steel, aluminum, iron, appliances and textiles, contributed to cost increases across the country in projects that relied on these materials to complete. Respondents to the Construction Contractors Survey noted that both the pricing and availability of certain materials became more volatile in the second quarter since the implementation of tariffs. As a result, projects such as installing solar panels, replacing heat pumps, installing new furnaces and replacing carpet experienced some of the largest increases. Other project categories, such as windows and doors and flooring, were also affected, though to a lesser extent.
Respondents report modest but improving renovation activity
With the construction and renovation industry being highly seasonal in Canada, respondents to the Construction Contractors Survey noted that activity had improved in the second quarter from the previous quarter. However, activity remained modest relative to the same period one year earlier. This observation is supported by nationwide residential renovation permit values, with the combined totals for April and May declining by approximately 8.6% compared with the same period of the previous year.
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).
Contact information
For more information, or to enquire about the concepts, methods or data quality of this release, contact us (toll-free 1-800-263-1136; 514-283-8300; infostats@statcan.gc.ca) or Media Relations (statcan.mediahotline-ligneinfomedias.statcan@statcan.gc.ca).