August 20, 2008

Edmonton and Calgary see fastest rise in apartment-building construction costs

Construction costs for apartment buildings are increasing faster in Edmonton and Calgary than any other major city in Canada, according to a Statistics Canada report released on August 15, 2008.

The apartment building construction price indexes provide an indication of new construction cost changes in six major metropolitan areas in Canada.

The report said construction costs for apartments in Canada increased 3.9 per cent to 167.2 (1997=100) in the second quarter from the first quarter of 2008.

Calgary recorded the highest quarterly change in the composite price index (6.8 per cent), followed by Edmonton (5.5 per cent), Toronto (4.4 per cent), Ottawa–Gatineau, Ontario part (3.7 per cent), Vancouver (3.3 per cent), Halifax (2.5 per cent) and Montréal (2.0 per cent).

“The quarterly increase was mostly the result of several factors, including higher material prices, in particular steel, and increases in labour and fuel costs,” said the report.

The construction cost for apartments in Canada jumped 8.5 per cent compared with the second quarter of 2007.

The largest increase in the composite index since the second quarter of 2007 occurred in Edmonton (13.6 per cent) from the second quarter of 2007.

This was followed by Calgary (13.4 per cent), Vancouver (8.9 per cent), Toronto (8.3 per cent), Ottawa–Gatineau, Ontario part (7.2 per cent), Montréal (5.2 per cent) and Halifax (4.4 per cent).

JOC News Service

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