23 Construction Cost Statistics for Ontario Homes (2026)
Cited Statistics Canada data on how fast home building costs are rising in Toronto, Ottawa and London, which materials cost more this year, and what that means for a renovation budget.
Home building costs in Canada rose 2.3% in the year to the second quarter of 2026, but Toronto rose just 0.1%, according to Statistics Canada. Construction costs are what a contractor charges to build or renovate, including materials, labour, equipment, overhead and profit. Material prices moved much faster than total building costs. Lumber was up 8.0% and copper 46.3% in a year. The 23 statistics below cover Ontario cities, trades and materials. To price your own project, get quotes from screened local contractors.
Building cost figures come from the Statistics Canada building construction price indexes for the second quarter of 2026 (released July 24, 2026), which track 15 census metropolitan areas. Material prices come from the Industrial Product Price Index for September 2026 (released October 22, 2026), and household prices from the Consumer Price Index for September 2026 (released October 19, 2026). All sources were checked on October 29, 2026.
Key Takeaways
- +2.3% in a year: residential building costs across 15 Canadian cities (Statistics Canada).
- -0.8% in Toronto in the second quarter of 2026, one of only three cities to fall (Statistics Canada).
- +4.2% in London and +3.5% in Ottawa over the same year (Statistics Canada).
- Lumber +8.0%, steel +14.8%, copper +46.3% in producer prices, year over year (Statistics Canada).
- Energy +19.0% for households, against 3.1% for all consumer prices (Statistics Canada).
How fast are home building costs rising in Canada?
Slowly. Residential building construction costs rose 2.3% from the second quarter of 2025 to the second quarter of 2026, across 15 large cities. Costs for non-residential buildings, such as offices and warehouses, rose faster, at 3.5%. The index tracks what contractors charge to build four types of residential buildings, from detached houses to high-rise apartments, without land or sales taxes.
1. Residential building costs rose 2.3% in a year
The residential building construction price index for 15 census metropolitan areas rose from 107.8 in the second quarter of 2025 to 110.3 in the second quarter of 2026 (2023=100), a 2.3% increase (Statistics Canada).
2. Costs rose 0.5% in the second quarter of 2026
Residential construction costs rose 0.5% from the first to the second quarter of 2026, after a 0.7% increase in the first quarter (Statistics Canada).
3. Non-residential costs rose 3.5% in a year
Non-residential building costs rose 1.4% in the second quarter of 2026 and 3.5% from a year earlier, faster than homes (Statistics Canada).
How are construction costs changing in Toronto and other Ontario cities?
Toronto is flat, while other Ontario cities are rising. Toronto residential building costs fell 0.8% in the second quarter of 2026 and ended up just 0.1% higher than a year before. Ottawa rose 3.5% and London rose 4.2% over the same year. The fastest increases were in Quebec, led by Québec City at 9.2%.
4. Toronto building costs fell 0.8% in the second quarter
Toronto residential construction costs fell 0.8% from the first to the second quarter of 2026. Only three of the 15 cities saw a decline that quarter: Toronto, Vancouver (-0.2%) and Calgary (-0.1%) (Statistics Canada).
5. Toronto costs were up only 0.1% in a year
The Toronto residential index stood at 105.7 in the second quarter of 2026, against 105.6 a year earlier, a 0.1% increase. That was the smallest rise of any of the 14 cities where costs went up (Statistics Canada).
6. Toronto carries 30.9% of the national index
Toronto has a 30.9% weight in the 15-city residential index, the largest of any city, because the weights follow the value of building permits issued in each area (Statistics Canada).
7. Ottawa home building costs rose 3.5%
Residential building costs in the Ontario part of Ottawa–Gatineau rose 0.8% in the second quarter of 2026 and 3.5% from a year earlier (Statistics Canada).
8. London home building costs rose 4.2%
London residential costs rose 1.4% in the second quarter of 2026 and 4.2% in a year. London non-residential costs rose 8.2%, the fastest non-residential increase of the 15 cities (Statistics Canada).
9. Toronto non-residential costs rose 3.2%
Even as Toronto home building costs held flat, Toronto non-residential building costs rose 1.3% in the quarter and 3.2% from a year earlier (Statistics Canada).
10. Québec City had the fastest rise at 9.2%
Québec City residential building costs rose 9.2% in a year, and Montréal rose 8.4%. Halifax rose 5.8% and Regina 7.6% (Statistics Canada).
Which parts of a building project are getting more expensive?
Metal work and site work. In the second quarter of 2026, Statistics Canada found the biggest cost increases in metal fabrications, structural steel framing and earthwork. Wood, plastics and composites cost slightly less than the quarter before. Statistics Canada links the metal increases to retaliatory tariffs and supply chain disruptions.
11. Metal fabrications rose 2.1% in one quarter
Among building divisions, metal fabrications rose 2.1%, structural steel framing 1.8% and earthwork 1.5% from the first to the second quarter of 2026 (Statistics Canada).
12. Wood, plastics and composites fell 0.3%
Wood, plastics and composites costs fell 0.3% in the second quarter of 2026, and conveying equipment, such as elevators, fell 0.2% (Statistics Canada).
How much have building material prices gone up?
It depends on the material. Producer prices for lumber and wood products were up 8.0% in September 2026 from a year earlier. Steel and other ferrous metals rose 14.8%, copper 46.3% and aluminum 26.9%. Cement, glass and other mineral products rose only 1.4%. These are factory-gate prices, so store prices can differ.
13. Lumber and wood products rose 8.0% in a year
Producer prices for lumber and other wood products were 8.0% higher in September 2026 than in September 2025, but fell 1.2% from August (Statistics Canada).
14. Fabricated metal products and construction materials rose 4.2%
The commodity group for fabricated metal products and construction materials rose 4.2% in a year and fell 1.2% from August to September 2026 (Statistics Canada).
15. Copper rose 46.3% and aluminum 26.9%
Producer prices for unwrought copper and copper alloys rose 46.3% and unwrought aluminum and aluminum alloys rose 26.9% from September 2025 to September 2026 (Statistics Canada). Copper is used in wiring and plumbing, and aluminum in windows, siding and eavestroughs.
16. Steel and other ferrous metals rose 14.8%
Primary ferrous metal products, the group that includes steel, rose 14.8% in a year (Statistics Canada).
17. Cement, glass and mineral products rose 1.4%
Cement, glass and other non-metallic mineral products rose just 1.4% from September 2025 to September 2026 (Statistics Canada).
18. Plastics rose 3.9% and electrical products 4.8%
Plastic and rubber products rose 3.9% and electrical, electronic, audiovisual and telecommunications products rose 4.8% in a year (Statistics Canada).
19. Diesel fuel prices more than doubled
Energy and petroleum products rose 63.9% in a year, and diesel fuel rose 106.1% (Statistics Canada). Diesel powers delivery trucks and site equipment, so it feeds into the cost of getting materials to a job.
20. Factory prices have risen 24 months in a row
The Industrial Product Price Index rose 14.5% year over year in September 2026, its 24th straight month of year-over-year increases (Statistics Canada).
How do construction costs compare with everyday prices?
Home building costs are rising more slowly than overall prices. Consumer prices rose 3.1% in the year to September 2026, and household energy rose 19.0%. Shelter costs rose 1.8%. New home prices fell 0.2% in September, which suggests builders are not passing every cost increase on to buyers.
21. Consumer prices rose 3.1% and shelter 1.8%
The Consumer Price Index rose 3.1% from September 2025 to September 2026, and the shelter component rose 1.8% (Statistics Canada).
22. Household energy prices rose 19.0%
The energy part of the Consumer Price Index rose 19.0% in a year, while household operations, furnishings and equipment rose only 0.4% (Statistics Canada). That gap makes energy upgrades such as insulation and air sealing worth pricing now.
23. New home prices fell 0.2% in September
The New Housing Price Index for Canada fell 0.2% from August to September 2026 (Statistics Canada). The index tracks contract prices for new single homes, semi-detached homes and townhomes, without GST or HST.
Statistics Canada also publishes a Residential Renovation Price Index, which tracks 37 renovation projects in 8 project groups across 15 cities (Statistics Canada). It is the closest official measure of what renovation contractors charge.
What do these numbers mean for your renovation budget?
In Toronto, home building costs have barely moved in a year, so last year's quotes are still a fair guide. In Ottawa and London, costs rose 3.5% to 4.2%. Jobs with a lot of copper, steel or aluminum face the biggest material increases, so ask each contractor how long a quote is good for.
- Price the full job. Our general contractor cost guide and home addition cost guide give Toronto and GTA price ranges.
- Plan for permits and labour. Our building permit statistics and skilled trades shortage statistics cover the other big cost drivers.
- Know the industry. Our general contractor statistics cover how many firms there are and what they earn.
- Start from a vetted list. Compare the best general contractors in Toronto or the best general contractors in Guelph, ranked on checked public data.
- Pro House Maintenance matches you with local pros who have passed WSIB, insurance, reference and background checks. Request free written quotes for your renovation.
Frequently Asked Questions
How much did home construction costs rise in Canada in 2026?
Residential building construction costs rose 2.3% from the second quarter of 2025 to the second quarter of 2026, across 15 large cities, according to Statistics Canada. Costs rose 0.5% in the second quarter of 2026 alone, after a 0.7% rise in the first quarter.
Are construction costs going down in Toronto?
Slightly, for now. Toronto residential building costs fell 0.8% in the second quarter of 2026 and were up just 0.1% from a year earlier, says Statistics Canada. Toronto was one of only three of the 15 cities where residential costs fell that quarter.
Is lumber more expensive in 2026?
Yes. Producer prices for lumber and other wood products were 8.0% higher in September 2026 than a year earlier, though they fell 1.2% from August, according to the Statistics Canada Industrial Product Price Index.
Which building materials went up the most in 2026?
Metals. Producer prices for unwrought copper rose 46.3% and aluminum rose 26.9% from September 2025 to September 2026. Primary ferrous metal products, which include steel, rose 14.8%. Cement, glass and other mineral products rose only 1.4%.
Do these numbers include HST and permits?
No. The Statistics Canada building construction price indexes cover materials, labour, equipment, overhead and contractor profit, but leave out sales taxes, land and design fees. Add HST, permit fees and any design or engineering costs on top of a contractor quote.
How do I get a fair renovation price in 2026?
Get at least three written, itemized quotes for the same scope and ask each contractor how long the price is good for. Pro House Maintenance is free for homeowners and matches you with local pros who have passed WSIB, insurance, reference and background checks.