Altus Canadian Cost Guide – 2023

Your guide to better understanding Canadian real estate development and infrastructure construction costs.

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Full Description

The Canadian construction and development industry hit major turbulence in 2022. The combination of widespread supply chain disruptions, sustained cost escalation, and rapidly rising interest rates strained the budgets of builders, developers, and governments alike.

Nevertheless, there is reason for cautious optimism. Underpinned by high immigration, increased immigration targets and a large backlog of projects underway, demand is likely to remain strong in the year ahead, even with a mild recession. In addition, supply chain snarls and inflation appear to be at, or nearing, an inflection point; potentially opening the door to less construction cost volatility in the year ahead.

Even so, let’s not forget the hard-won lessons of the past few years. The best laid plans can be stymied by abrupt reversals in myriad factors – pandemic, geopolitical relations, and run-away inflation to name a few. Take these lessons to heart and ensure your budgets and pro formas are living documents, up-to-date with the latest available information. Having a current and accurate understanding of construction costs is imperative to help manage development risk and navigate turbulent times.

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