In 2023, Canada’s economic growth posed challenges for the construction industry, ranking Toronto, Vancouver, Calgary, and Montreal among the top 50 most expensive places for construction globally.

Per findings from Arcadis’ 2024 International Construction Costs Index, in 2024, Canada’s construction sector is poised for cautious optimism, with a few bright spots on the horizon. The report forecasts continued slow growth as near-cyclical high-interest rates temper investor sentiment and moderate expectations.

The housing shortage remains a critical issue across Canada, driven by federal immigration policies fuelling population growth and consumer demand. To address this shortfall, the federal government has allocated $6 billion to the Canada Housing Infrastructure Fund. Canada’s largest infrastructure project, the addition of 1,000 km (621 mi) of a new rail track for high-speed rail services between Quebec City, Montreal, Ottawa, and Toronto, is expected to advance sometime in summer 2024.

The report presents a concise five-point framework for fast, complex program delivery applicable across all sectors. The 2024 Arcadis International Construction Costs Index compares construction costs in 100 major cities worldwide to Amsterdam, indexed against USD.

The full report can be accessed here.