Apartment Building Construction Price Index, third quarter 2017
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Released: 2017-11-14
Contractors' prices for the construction of new apartment buildings rose 0.8% in the third quarter compared with the previous quarter. Nationally, prices have been increasing since the fourth quarter of 2015.
Prices for new apartment building projects rose in all seven census metropolitan areas (CMA) surveyed. Contractors working in Vancouver and Ottawa reported the largest increases (both up 1.2%). The increases were attributed to higher demand for skilled labour in the architectural and structural trades, as well as rising costs for materials—particularly lumber.
Contractors in all seven CMAs surveyed reported higher prices for lumber in the third quarter, coinciding with the forest fires in British Columbia. According to the Industrial Product Price Index, prices for lumber and other sawmill products rose 4.1% from June to September 2017.
Apartment Building Construction Price Index, year-over-year change
Over the four quarters ending in September 2017, contractors' prices for new apartment building construction rose by 4.0%, with Vancouver (+6.9%) leading the increase.
Since the beginning of 2017, contractors in Vancouver have reported year-over-year price increases of over 6.0%, driven in part by higher prices for drywall and concrete. The Industrial Product Price Index recorded a 2.1% increase for ready-mixed concrete nationally between January and September 2017.
Note to readers
The Apartment Building Construction Price Index is a quarterly series that measures the changes in contractors' selling prices of new apartment building construction in seven census metropolitan areas: Halifax, Montréal, Ottawa–Gatineau (Ontario part), Toronto, Calgary, Edmonton and Vancouver.
Selling prices include the costs of materials, labour and equipment, provincial sales taxes where applicable, and contractors' overhead and profit. The costs of land, land assembly, design and development, as well as real estate fees, are excluded. Value added taxes such as the federal Goods and Services Tax and the harmonized sales tax are excluded.
With each release, data for the previous quarter may have been revised. The index is not seasonally adjusted.
A Historical Timeline of Canadian Producer Price Statistics
To celebrate Canada 150, A Historical Timeline of Canadian Producer Price Statistics, which is part of Statistics Canada — Infographics (11-627-M), was created to showcase the key milestones in the history of Canadian producer price statistics. This historical timeline contains answers to questions such as: Who collected Canada's first statistics? What do Canadian producer price indexes measure?
Infographic: Producer Price Indexes at a Glance
The infographic "Producer Price Indexes at a Glance," which is part of Statistics Canada — Infographics (11-627-M), demonstrates how producer price indexes for goods and services are calculated and why they are important for the Canadian economy.
Contact information
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