Canada's building construction prices rise in second quarter
It was the largest increase since the series began in 2017, accelerating from a 4.9 percent increase in the first quarter. Meanwhile, non-residential building construction prices grew 3.7 percent, the fastest pace since the second quarter of 2008.
Construction costs for single-detached houses and apartment buildings contributed the most to the residential building construction price growth in the second quarter.
The price increase for non-residential construction was mostly attributable to office buildings, warehouses and shopping centers.
Higher residential building construction prices in the second quarter were largely due to record high lumber and wood product prices.
Prices for lumber and other wood products surged 27.9 percent from the first to the second quarter of 2021.
The price surge was due to ongoing supply chain constraints, combined with high demand for new houses and renovations in the wake of changing preferences for more space during the COVID-19 pandemic, as well as low-interest rates.
The supply chain constraints included operational delays at sawmills, as well as transportation difficulties.
Additional demand from the United States added to building material shortages in Canada.