Canadian Construction Cost Inflation Report — November 2026

Demolition costs in Ontario exploded in November, jumping $8,347 per project — a 307.0% month-over-month increase that brought the provincial average from $2,718 to $11,065 across 95 sampled projects. That single figure dominates this month's data and demands immediate attention from anyone planning a tear-down, gut renovation, or site clearance in the province. It is not an isolated provincial anomaly either: national demolition costs rose 37.8% in the same period, climbing from $4,034 to $5,557 across 535 projects, confirming that something structural — not merely a data blip — is reshaping the demolition segment coast to coast. On a quarterly basis, Ontario demolition is up 311.0% from $2,692 three months ago, and the national quarterly figure shows a 35.0% increase from $4,116. These are among the most dramatic short-cycle price movements recorded in any single trade category in recent memory.

Summary of the Top 10 Movers — November 2026

What Is Driving Costs Up — and Where

The Ontario demolition surge is the story of the month, and its causes are almost certainly multifactorial. Disposal and landfill tipping fees in Ontario have been rising steadily as landfill capacity tightens and regulatory requirements around waste classification become more stringent — particularly for older residential structures where asbestos abatement, lead paint protocols, and HVAC refrigerant recovery add layers of labour and compliance cost that simply did not exist at the same scale a decade ago. When those compliance layers collide with a tight pool of licensed demolition contractors, prices can reprice rapidly, especially in a month where project volume is moderate (n=95 is a real but not enormous sample). Contractors with the credentials and equipment to perform compliant demolitions are capturing significant pricing power.

Beyond demolition, British Columbia is the province to watch this quarter. Garage construction surged 23.9% quarter-over-quarter, from $38,997 to $48,327 across 76 projects. HVAC installation climbed 20.5% in the same window, from $5,953 to $7,172. Bathroom renovations are up 15.5% quarterly, reaching $13,214 on a sample of 544 projects — a robust dataset that lends confidence to the trend. Electrical work in British Columbia rose 8.1% over the quarter to $4,216, and plumbing gained 5.0% to $4,217. British Columbia is experiencing a broad-based labour cost escalation across mechanical and finishing trades that is consistent with persistent journeyperson shortages in the province and ongoing wage renegotiations in the skilled trades sector. Building permit fees in British Columbia also rose 6.6% quarterly to $1,514, signalling that regulatory carrying costs are adding pressure at the front end of the project pipeline.

Ontario's general construction average reached $6,589 in November, up 4.3% month-over-month and 12.7% quarter-over-quarter from $5,847. Foundation repair in Ontario climbed to $12,897, up 8.4% over the quarter and 2.5% in the most recent month alone, reflecting both increased demand from aging housing stock and the elevated cost of hydraulic cement, steel reinforcement, and waterproofing membranes. Kitchen renovations in Ontario hit $32,476, a 4.0% monthly gain that pushes the Ontario average meaningfully above the national figure of $25,561 — a gap of nearly $7,000 that reflects both higher labour rates and the premium appliance and cabinetry specifications common in Ontario markets.

Secondary suite construction costs are rising nationally, up 1.6% month-over-month to $91,956 and gaining across British Columbia ($100,698), New Brunswick ($102,472), and Ontario ($94,319). The secondary suite category has been propelled upward for the better part of two years by federal and provincial incentive programs that have increased demand without proportionally expanding the supply of contractors specializing in this work. New Brunswick's secondary suite average now sits above the national figure, an unusual positioning that reflects both a smaller contractor base and strong demand pressure in a province with historically tight rental vacancy.

The national general construction average reached $8,758, up 0.8% month-over-month and a more telling 9.1% quarter-over-quarter. This broad-based category captures a wide range of residential and light commercial work and serves as a reliable macro signal. A quarterly gain of that magnitude, sustained across nearly 7,000 sampled projects, is not noise. It reflects genuine input cost escalation across lumber, engineered wood products, and concrete, compounded by labour rate increases as unionized and non-unionized trades alike push for wages that keep pace with the broader cost of living.

Where Costs Are Softening — and Why

Not every category is moving upward, and the downward movers deserve equal analytical attention. Foundation repair in Alberta fell 2.4% month-over-month to $19,983, pulling back from $20,468, with an 86-project sample providing reasonable confidence. Alberta has historically benefited from a more elastic contractor supply than British Columbia or Ontario, and the province's foundation repair market may be normalizing after a period of elevated demand driven by ground movement and freeze-thaw cycles. Alberta landscaping also eased 2.5% to $6,721, consistent with seasonal contraction as exterior project demand fades heading into winter — though the sample of 33 projects warrants caution about over-interpreting that movement.

Siding costs are declining in both British Columbia and New Brunswick. British Columbia siding dropped 3.3% month-over-month to $16,939 and is down 4.2% over the quarter. New Brunswick siding fell 0.7% monthly and 4.4% quarterly to $13,447. Vinyl and fibre cement siding material costs have moderated from peak levels, and the seasonal slowdown in exterior cladding work — fewer crews competing for urgent scheduling in cold-weather months — has reduced urgency pricing. Roofing in New Brunswick fell 5.4% quarterly to $10,114, a meaningful correction from $10,686 that tracks the same seasonal logic.

Basement finishing in Ontario eased 1.2% month-over-month to $23,125, a modest but notable reversal after months of upward drift. This may reflect a natural demand plateau as homeowners who rushed to add livable square footage in the post-pandemic cycle complete their projects. Basement finishing in British Columbia also dipped slightly, down 0.6% to $25,498. Door replacement in British Columbia fell 5.9% quarterly and window replacement in Alberta declined 3.8% over the same period — both consistent with supply chain normalization in the fenestration sector, where factory lead times have shortened and competitive pricing has returned to a segment that was severely constrained as recently as 2024.

New Brunswick's general construction average declined 1.2% month-over-month to $7,449, and fence costs in the province fell 1.7% to $3,662 — though that same fence category is up 30.1% on a quarterly basis, a striking divergence that suggests considerable volatility in what remains a small sample (n=23). The quarterly fence figure should be interpreted with caution.

Three-Month Forecast: What Comes Next

The forward outlook for the next quarter is shaped by three dominant forces: the Ontario demolition repricing, the British Columbia trade labour escalation, and the broader seasonal deceleration that typically moderates activity in January and February.

Ontario demolition costs are unlikely to retreat quickly. The compliance and disposal dynamics driving this repricing are structural, not cyclical. Contractors who have invested in environmental compliance certifications and proper waste handling equipment have recouped that capital expenditure through pricing, and there is no near-term mechanism — absent a significant regulatory rollback or new landfill capacity — that would compress costs back toward the $2,718 baseline of three months ago. Homeowners and developers in Ontario should budget for demolition costs in the $10,000–$12,000 range for the foreseeable future and factor this into project feasibility analysis accordingly.

British Columbia will remain the highest-pressure province for mechanical and finishing trades. HVAC, electrical, plumbing, and bathroom renovation costs are all trending upward simultaneously, and the quarterly gains recorded through November suggest this is an accelerating, not decelerating, trajectory. Expect HVAC installation in British Columbia to test the $7,500 mark by February 2027 if current quarterly velocity holds. General construction in the province reached $14,925 on a quarterly gain of 8.8%, and there is no supply-side signal — no sudden expansion of Red Seal certifications, no material easing in journeyperson wages — that would change this picture materially before spring.

National general construction costs, having gained 9.1% in a single quarter, are likely to moderate slightly as winter reduces project volume and some of the demand-driven urgency pricing eases. The national average of $8,758 will likely consolidate in the $8,800–$9,100 range through January before the spring renovation season re-energizes demand. Secondary suite construction will remain elevated nationally, particularly in British Columbia and New Brunswick, where the combination of incentive-program demand and constrained contractor supply has established a durable pricing floor above $100,000.

For homeowners, the message is clear: delay carries cost. Categories showing month-over-month and quarter-over-quarter simultaneous increases — general construction, foundation repair, kitchen renovation, and secondary suites — are not showing signs of reversal. For contractors, the demolition and mechanical trades are entering a period of genuine pricing power, and capacity investment made now will position firms favourably when the spring 2027 season begins in earnest.