🚀 Up 51%

Costs have increased since the pandemic. A lot...

Author

Russell Hixson
July 04, 2023

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Good morning! We hope your Canada day festivities were as exciting as what is brewing at Rome’s Colosseum. One of the world’s greatest construction achievements, the 50,000 to 80,000-seat venue has been offered to Mark Zuckerberg and Elon by the Italian government for their potential billionaire battle. Who’s your money on?

⏰ Today's reading time is 5 minutes.

MARKETS

Economy: The latest data from Statistics Canada shows that the Canadian economy remained essentially unchanged in April after a slight bump up in March. The agency noted that the April numbers came in lower than expected as services-producing industries were unchanged while goods-producing industries edged up 0.1%. The federal agency’s advance estimate for May however suggests real gross domestic product grew 0.4% last month, led by the manufacturing and wholesale-trade sectors.

THE BIG STORY

Post-COVID home building costs are brutal

Home construction costs have escalated massively, a new report from RBC shows. And it’s hardly the news needed in a country with a critical housing crisis.

Running the numbers:

  • The residential construction price index has gone up 51% in the years since the start of the pandemic.

  • Prices for concrete and structural steel rose 55% and 53% respectively since the first quarter of 2020.

  • While lumber prices spiked in 2021 and early 2022, they have since normalized.

  • Last year, municipal levies and fees for housing developers rose up to 30% for single or semi-detached units.

  • Because of this, housing starts are expected to dip 10% this year.

Other contributing factors: The report noted that Canada’s fast-growing population, extreme weather events, high labour costs due to the skilled worker shortage and low production of raw materials are also to blame for the increase.

Looking on the bright side: It’s not all bad news. Data also shows that while costs have escalated, these escalations are slowing. And don’t forget that non-residential construction is experiencing solid growth. While a lot of uncertainty and challenges remain, there is still a lot to be thankful for.

NEED TO KNOW

The week's headlines

🚢 A strike involving more than 7,000 dockworkers in Western Canada entered its third day this week. It includes the nation’s busiest port, Port of Vancouver and the third busiest, Port of Prince Rupert. A quarter of Canada’s goods flow through them. One major concern for the workers are plans to begin automating work at a new terminal in Delta, B.C.

🖥️ Builders in Calgary are using artificial intelligence to streamline the construction process. Trico Homes has an ongoing partnership with local tech company OpenHouse.ai. Company officials say the technology helps analyze Trico’s resources and numerous sites to boost productivity.

🏠 The city of Burnaby is looking to fill housing supply gaps by creating its own housing authority. The B.C. municipality has the third highest rent in the nation. According to the city, the Burnaby Housing Authority (BHA) would focus on building and managing non-market rentals and non-market ownership housing, according to staff recommendations approved by council on Monday. Officials hope to launch the authority later this year.

🏗️ Canada’s housing gap may be bigger than we think. New research suggests the nation needs an extra 3.5 million units by 2030 to restore affordability. Experts noted that, as big as those numbers are, the real gap is even larger, as official figures grossly undercount housing demand by students and non-permanent residents.

PROJECT SPOTLIGHT

ʔəya҆lməxʷ/Iy҆álmexw/Jericho Lands

A sea of towers: Planning for the Indigenous-led development on Vancouver’s Jericho Lands is ongoing and it continues to grow. The most recent plan revisions would see 13,000 homes built on the site for up to 24,000 residents. Previous plans called for 9,000 homes for 15,000 to 18,000 residents. existing population. It would feature 30 high-rise towers. The project is currently awaiting master plan approval from the city. Leading the project is MST Development Corporation — the development company jointly owned by the Musqueam, Squamish, and Tsleil-Waututh First Nations.

PROJECT UPDATES

Coastal GasLink has officially reached 90% completion 

Graham Design Builders LP selected for the $590M Dawson Creek hospital project

Numesh announces $40M expansion to increase building product capacity

Manitoba plans to spend $260M upgrading education infrastructure 

$500M BMO Centre expansion to open in time for Calgary Stampede

Bitter construction rivalry delays Highway 1 work in St. John’s

MEET ‘25 INNOVATORS’ JUDGE RUSSELL HIXSON

SiteNews is proud to have its own editor, Russell Hixson, as a judge for our inaugural 25 Innovators in Construction Awards. After spending years in the U.S. as an investigative crime reporter, he returned to the lower mainland and spent eight years covering every aspect of Canadian construction for the Journal of Commerce. Last year he joined the SiteNews team and helped launch the new publication. Don’t forget: Applications for the awards close July 14th and winners will be announced Sept. 7th.

The inaugural awards are possible thanks to its presenting sponsor, Procore Technologies.

Learn more about the awards and apply online here.

WHAT WE’RE TALKING ABOUT

PHOTOS: 📸 17 construction jaw-dropping construction shots from June

READ: ⚡EV sales are ramping up in a big way

PHOTOS: 🏳️‍🌈 EllisDon workers march for Toronto Pride 

TWEET: 📈 This population chart will blow your mind

READ: 🍄 Can vegetables help detox construction waste?

LIST: 🏆 13 the construction awards to fill up your shelf

HOT JOBS

🔥 Check out the best roles up for grabs in construction right now:

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Here’s to a great rest of the week!