Homebuyers are struggling to keep up with the rising costs of construction in Canada!01 Jun 2019
There continues to be an increase in construction costs in Canada, further causing a linear increase in associated home pricing. Statistics Canada released a study determining that construction costs rose by 0.3% during this year’s first quarter (https://www150.statcan.gc.ca/n1/daily-quotidien/190516/dq190516d-eng.htm).
The biggest increase can be seen in Montreal given that costs rose by 1.5%. Toronto on the other hand is seeing a slower more constant increase in construction prices. The majority of the pricing fluctuation is felt by high-rise developments.
Supply and demand surely plays a vital role in these increases. The shortage of skilled labour, and increase in competition for specific tools and machinery drive up pricing. Simply put, everyone is competing for the same resources.
Additional factors that contribute to the increase in pricing are; the quality of fabrication has increased, developed are using better quality material. Furthermore, delivering material to job sites has become more difficult due to closures and construction, leading to an increase in cost.
Last but not least, the carbon tax can undoubtedly be thanked for rising prices as well!