Building construction price indexes, second quarter 2026
Released: 2026-07-24
National overview
Residential building construction costs increased 0.5% in the second quarter, following a 0.7% increase in the previous quarter. Non-residential building construction costs rose 1.4% in the second quarter, following a 0.9% increase in the previous quarter.
Year over year, construction costs for residential buildings in the 15-census metropolitan area (CMA) composite rose 2.3% in the second quarter, while non-residential building construction costs saw an increase of 3.5%.
The construction industry faced several challenges in the second quarter, as geopolitical tensions drove higher oil prices; retaliatory tariffs between Canada and the United States disrupted supply chains; regulatory uncertainty delayed purchases; and seasonal construction projects further intensified demand for an already constrained skilled trades workforce. Builders across the country reported that higher fuel prices contributed to increased operating costs, increasing costs related to construction equipment and machinery, as well as the transportation of building materials.
Regional factors also contributed to cost pressures and uncertainty. Builders in Ontario noted that uncertainty surrounding the implementation of the federal GST/HST rebate continued to delay purchasing decisions, particularly for new homes, as developers and buyers awaited the legislation required to make rebate claims, which came into effect on June 22, 2026. In Quebec, builders reported that annual construction union wage increases contributed to upward pressure on construction costs in the province. Taken together, these factors contributed to a challenging operating environment for builders across the country during the second quarter.
Chart 1
Building construction price indexes, quarterly change, second quarter of 2026
Metal fabrications division leads residential construction cost growth
In the second quarter, residential building construction costs rose across nearly all CMAs, with Québec (+2.6%) reporting the largest quarterly increase, followed by Montréal (+2.5%). Increases were also notable in Halifax (+2.1%), Saskatoon (+2.0%), and Regina (+2.0%). Calgary (-0.1%), Vancouver (-0.2%), and Toronto (-0.8%) were the only CMAs to experience declines in the second quarter.
At the division level for residential building construction, the metal fabrications (+2.1%) division saw the largest quarterly increase in the second quarter, followed by the structural steel framing (+1.8%) and earthwork (+1.5%) divisions. In contrast, the conveying equipment (-0.2%) and wood, plastics and composites (-0.3%) divisions recorded price declines in the second quarter. Metal and steel products continued to lead cost increases due to the upward price pressure associated with implemented retaliatory tariffs and the related supply chain disruptions.
Québec leads non-residential construction cost growth
The cost of constructing non-residential buildings increased the most in Québec (+2.7%) in the second quarter, followed by Saskatoon (+2.1%) and London (+2.1%). Montréal (+1.9%) and Regina (+1.8%) also reported similar growth. In contrast, Victoria (+0.9%) and Vancouver (+0.2%) showed the smallest growth in the second quarter.
At the composite level, non-residential building construction costs increased across all divisions measured in the second quarter, with the conveying equipment (+2.9%), earthwork (+2.2%), structural steel framing (+2.2%) and metal fabrications (+2.0%) divisions recording the largest increases. Increases in these divisions reflected rising oil and fuel related prices, as these segments are heavily reliant on the use of machinery and equipment, and the transportation of materials. Price pressure across most other segments was moderate through the second quarter, while the finishes (+0.5%) and wood, plastics, and composites (+0.5%) divisions experienced the smallest price growth in the quarter.
Note to readers
The building construction price indexes are quarterly series that measure the change over time in the prices that contractors charge to construct a range of new commercial, institutional, industrial and residential buildings in 15 census metropolitan areas (CMAs): St. John's, Halifax, Moncton, Québec, Montréal, Ottawa–Gatineau (Ontario part), Toronto, London, Winnipeg, Regina, Saskatoon, Calgary, Edmonton, Vancouver and Victoria. Provincial-level indexes are also calculated and are based on the respective CMA-level movements.
These buildings include six non-residential structures: an office building, a warehouse, a shopping centre, a factory, a school, and a bus depot with maintenance and repair facilities. In addition, indexes are produced for four residential structures: a single-detached house, a townhouse, a high-rise apartment building (five storeys or more) and a low-rise apartment building (fewer than five storeys).
The contractor's price reflects the value of all materials, labour, equipment, overhead and profit to construct a new building. It excludes value-added taxes and any costs for land, land assembly, building design, land development and real estate fees.
With each release, data for the previous quarter may have been revised. The index is not seasonally adjusted.
With the publication of data for the third quarter of 2024, the indexes have been rebased to 2023=100 and table 18-10-0276 has been archived and replaced by table 18-10-0289. The information that was in table 18-10-0276 has been rebased and is also available in the new table, except for the four new CMAs, which include Québec, London, Regina and Victoria, for which data are only available from 2023 onwards. Even though the indexes have been rebased, the quarterly changes of the indexes prior to 2023 are identical to what was released in the previous tables. Any differences that are identified are due to rounding. The quarterly changes from 2023 onwards may have changed because the weights were updated and four CMAs were added.
CMA-level and building-level weights are available on an annual basis and can be found in table 18-10-0290. Further, division-level weights for all building types within each CMA are available on an annual basis and can be found in table 18-10-0287.
Products
The Building Construction Price Indexes Data Visualization Tool is now available. It provides access to current and historical data from the Building Construction Price Index (BCPI) for four residential and six non-residential building types, for the census metropolitan areas (CMAs) of St. John's, Halifax, Moncton, Québec, Montréal, Ottawa–Gatineau (Ontario part), Toronto, London, Winnipeg, Regina, Saskatoon, Calgary, Edmonton, Vancouver and Victoria, as well as for a composite of these 15 CMAs, in a dynamic and customizable format.
The Technical Guide for the Building Construction Price Index, 2023, is now available. This document provides details on the methodology used to calculate the BCPI.
Statistics Canada launched the Producer Price Indexes Portal as part of a suite of portals for prices and price indexes. This webpage provides Canadians with a single point of access to a wide variety of statistics and measures related to producer prices.
The video "Producer price indexes" is available on the Statistics Canada Training Institute webpage. It provides an introduction to Statistics Canada's producer price indexes: what they are, how they are made and what they are used for.
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).
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