Buyers should expect to pay more for new homes.
The cost of residential construction in Canada increased by 22.6% in the first quarter of 2022 compared to the same period last year.
In a report released Thursday, May 5, Statistics Canada said the year-over-year growth “exceeds previous highs.”
The increase exceeds the “high (+21.9% recorded in the previous quarter”).
The report covers 11 census metropolitan areas or CMAs, which correspond to major urban centres.
The largest increases were recorded in Calgary (31.4%), Edmonton (26.6%) and Toronto (26.5%).
In Metro Vancouver, the cost of building homes in the first quarter of 2022 increased by 15.4% compared to the same period in 2021.
The Moncton CMA posted the lowest cost growth at 8.5%.
All other urban centers recorded double-digit increases.
“Contractors surveyed attributed some of the growth in building construction costs to rising labor costs, and an increase in vacancies in construction trades contributed to the increase in salaries in these occupations,” explained Statistics Canada.
“Additionally, amid rising fuel prices, contractors reported that more of their spending was now allocated to transporting their construction materials.”
On a quarterly basis, construction costs for residential buildings in the 11 CMAs increased by 5.6% in the first quarter of 2022 compared to the fourth quarter of 2021.
Statistics Canada noted that the quarterly increase in 2022 was the “largest increase since the second quarter of 2021.”
In Metro Vancouver, quarterly growth was 4.3%.