Canada experienced an average year-over-year construction cost increase of 5.04% (above the national average of 4.39%). These cities include Toronto (5.29%) and Calgary (4.79%).
Alberta’s economy is projected to grow by 1.9% in 2025 and 2.1% in 2026, outpacing the national average. Population growth is slowing but remains stronger than the rest of Canada, with 170,000 new residents expected over two years, supporting consumer spending and housing demand. Housing starts are forecast to hit a record 55,000 in 2025 as builders respond to migration, with home sales projected to grow nearly 10% next year. Year-to-date starts are up 22% compared to Q3 2024, driven by a 29% increase in multi-unit dwellings and an 8% rise in single-unit construction. Calgary leads in housing starts per 10,000 residents. Non-residential construction intentions rose at the end of Q3, with permit values up 31% year-to-date, fueled by a 142% increase in Institutional & Governmental projects, particularly schools.
In Ontario, condominium construction faces challenges but shows signs of recovery. Existing home sales surged 25% in Q3 from Q1 lows, and GTA condo resales are up 30% since March. While overall activity remains low and supply high, demand is trending upward, supported by more rental starts and government incentives. Toronto’s rental apartment construction outperformed condos but fell 8% year-over-year. Meanwhile, GTA retail grew 12%, with investors favoring food-anchored properties. Ontario also announced a $56 billion, decade-long healthcare plan to support over 50 hospital projects and add 3,000 beds.
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