Construction outlook solid amid rising costs

February 6, 2023



The home building industry appears poised for continued growth this year—even amid rising construction and financing costs—according to the 2023 Construction Cost Guide released by Altus January 26, 2023.
“Underpinned by high immigration and a large backlog of projects underway, demand is likely to remain strong in the year ahead, even with a mild recession,” Altus noted.
Altus analysts suspect supply chain snarls and inflation will ease in 2023, opening the door to less construction cost volatility in the year ahead.
The 2023 Cost Guide for residential is drawn from data on $148 billion in construction, covering 2,317 projects with a total of more than 836 million square feet.
The report found the maximum per-square-foot cost to build a 12-storey concrete condominium building was highest in Greater Toronto and Metro Vancouver at $380. Calgary, Edmonton and Winnipeg all peaked at $320 per square foot, while Halifax, Montreal and St. John’s were all below $300 per square foot for a tower up to 12 storeys.
The Cost Guide covers hard costs only and does not include land or soft costs, such as financing, design or marketing.
The cost to build an average builder spec single-family detached house with an unfinished basement ranged from a maximum high of $315 per square foot in Vancouver to a low of $165 per square foot in Halifax and St. John’s.