Building construction price indexes, third quarter 2026
Released: 2026-10-29
National overview
Residential building construction costs increased 0.8% in the third quarter, following a 0.6% increase in the previous quarter. Non-residential building construction costs rose 1.2% in the third quarter, following a 1.4% increase in the previous quarter.
The revision period for the Building Construction Price Index was extended by one quarter to incorporate data received after the usual revision window. As a result, for the first quarter, the Non-Residential Building Construction Price Index was revised upward by 0.2%, while the previously published Residential Building Construction Price Index was unchanged.
Year over year, construction costs for residential buildings in the composite of 15 census metropolitan areas (CMAs) rose 2.7% in the third quarter, while non-residential building construction costs saw an increase of 4.3%, inclusive of extraordinary revisions.
Builders reported that construction cost increases during the third quarter were driven by higher material, fuel, transportation and labour expenses. Builders, predominantly those on the east coast and in the Prairie provinces, also noted capacity pressures and upward wage adjustments for skilled labour and subcontractors.
Trade uncertainty continued to affect the construction industry, following the introduction of additional Canadian retaliatory tariffs on US products, effective September 8, 2026. Tariffs ranging from 15% to 50%, including increases of 50% on certain steel and aluminum products, added to cost pressures on construction materials and equipment in the third quarter.
Chart 1
Building construction price indexes, quarterly change, third quarter of 2026
Metal fabrications division leads residential construction cost growth
In the third quarter, residential building construction costs rose across all CMAs measured, with Québec (+2.3%) reporting the largest quarterly increase, followed by Regina (+1.8%). Price growth varied across the country, as Moncton (+0.6%), Toronto (+0.4%) and Vancouver (+0.2%) reported the smallest quarterly increases.
At the division level for residential building construction, the metal fabrications division (+2.4%) saw the largest quarterly increase in the third quarter, followed by structural steel framing (+2.0%) and earthwork (+2.0%). The fire suppression and plumbing divisions experienced the smallest growth, both at (+0.3%) this quarter, while masonry (0.0%) prices remained unchanged. Metal and steel products continued to lead in cost increases due to the upward price pressure associated with retaliatory tariffs and ongoing supply chain disruptions.
Québec and Regina lead non-residential construction cost growth
In the third quarter, costs to construct non-residential buildings increased the most in Québec (+2.4%) and Regina (+2.4%), followed closely by Montréal (+2.0%). In contrast, Ottawa (+0.7%) and Halifax (+0.7%) showed the smallest growth this quarter.
At the composite level, non-residential building construction costs increased across all divisions measured in the third quarter, with the structural steel framing (+3.3%), conveying equipment (+3.1%) and metal fabrications (+2.1%) divisions recording the largest increases. The communications (+0.5%), fire suppression (+0.5%) and electrical (+0.4%) divisions experienced the smallest price growth.
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.
The revision period for the Building Construction Price Index was extended by one quarter with the 2026 third quarter release to incorporate data received after the usual revision window.
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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