👀 Forecast

Together with

Good morning! ❄️ As eastern Canada remains in the grip of a historic winter storm, one Sudbury contractor is using her construction expertise to help prevent frostbite among homeless people. She began creating insulated tent bases and clothing liner kits after touring downtown encampments and finding poor ventilation and direct exposure to the cold ground.

⏰ Today’s read: 5 minutes

MARKETS

Economy: Statistics Canada reported that Canada’s annual inflation rate rose to 2.4% in December, up from 2.2%, largely due to the expiry of a federal GST “tax holiday” on certain goods a year earlier. Economists noted that while headline inflation exceeded expectations, core inflation measures are moderating and moving closer to the Bank of Canada’s 2% target.

TOGETHER WITH 720 MODULAR

720 stacks up modular success in the Maritimes

720 Modular is advancing phase two of P.E.I.’s Malpeque apartment project by applying lessons learned from its first six-storey build, successfully craning 63 family-oriented units into place this winter (despite challenging Maritime weather). 

The project highlights modular construction’s ability to reduce risk, speed delivery, and build local capacity through partnerships, positioning Malpeque as a key case study for broader adoption of modern construction methods in Atlantic Canada — and beyond. 

Learn more about what it takes to succeed with modular building in our interview below.

NEED TO KNOW

The week's headlines

💧 Funding flows: Ontario is investing an additional $700 million to upgrade and expand aging water and wastewater infrastructure in 127 municipalities and First Nations communities, using the Health and Safety Water Stream of its $4-billion Municipal Housing Infrastructure Program.

Accelerated schedule: Calgary is accelerating construction of a replacement Bearspaw South Feeder Main, aiming to complete a new parallel steel pipe by the end of this year—roughly one year after the most recent catastrophic break that caused major flooding and water restrictions. 

🏠 All options: Ontario’s Progressive Conservative government is considering expanding its new HST rebate on newly built homes beyond first-time buyers, after Premier Doug Ford acknowledged the $470-million tax credit has failed to stimulate housing construction as intended. Finance Minister Peter Bethlenfalvy said “all options are on the table”.

🌊 Steel boost: A South Korean shipbuilder, Hanwha Ocean, has signed a binding memorandum of understanding with Algoma Steel that could deliver up to $345 million to the Sault Ste. Marie steelmaker if Korean firms win Canada’s more than $12-billion contract to build a new fleet of submarines.

THE BIG STORY

2026 forecast: Finding out what still works

After a turbulent 2025, Canada’s construction and development leaders are approaching 2026 with guarded optimism.

Capital isn’t chasing hype
Developers and lenders are placing bets on projects that already show absorption, certainty, and clear exit paths. Speculative towers and luxury condos remain out of favour, while demand for rental, mid-market housing, and industrial projects holds strong in core regions.

Interest rates stay sticky: The Bank of Canada is expected to hold its key rate steady well into 2026, keeping debt costs high. While inflation is easing, there’s little expectation of deep rate cuts — meaning financing remains tight, and project timelines continue to stretch.

Retail and industrial win the narrative: Developers say grocery-anchored retail and small-bay industrial are leading the way in both leasing and construction. Tenant demand is strong, risk is manageable, and these asset classes are giving capital a reason to stay in the game.

Multifamily pivots to rentals: With ownership affordability still stretched, rental remains the default for many cities. Purpose-built rental is one of the only residential formats showing broad institutional backing — especially if paired with incentives or HAF-linked municipal deals.

Slow growth, not no growth: Real GDP is expected to expand by just over 1% in 2026, with inflation hovering near 2%. There’s no crash on the horizon, but no boom either — and that has builders focused on efficiency, speed, and execution over vision decks and renderings.

PROJECT SPOTLIGHT

Broad appeal

New road closures are set to begin for the massive Broadway Subway Project in Vancouver. The project aims to extend TransLink’s Millenium Line network west from the VCC-Clark Station to Arbutus Street, and will include six new underground SkyTrain stations. The new line, planned to be completed in 2027, will feature six underground stations and provide critical service to the University of British Columbia.

PROJECT UPDATES

Manitoba begins work on four new schools

Kamloops unveils downtown curling and racquet complex

BHP adjusts estimated cost of Jansen Mine project

$100M invested to build defence lab network

Construction wraps on long-awaited Calgary hospital expansion

Ontario greenlights new clean water pipeline

WHAT WE’RE TALKING ABOUT

🎙️ PODCAST: Top 100 Projects trends you probably missed

🏛️ PHOTOS: Manitoba buildings that predate Manitoba 

🏗️ READ: Millennials embrace prefabrication

🐶 WATCH: Shop class builds dog houses for Indigenous communities

⛏️ READ: Find artifacts/remains on site? Expect these fees

👶 READ: $5.5M daycare project in limbo due to uncertain land ownership

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Here’s to a great rest of the week!

Disclaimer: SiteNews is an independently-operated news website. Views expressed are that of the editorial team and are based on publicly available information unless otherwise noted through sponsored content.