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Canada Construction Industry Report 2025: Output to Grow by 2.6% in 2.6% in 2026 After 2.2% Growth in 2025, Driven by PPI in Residential and Non-residential Construction and Transport Infrastructure
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Canada Construction Industry Report 2025: Output to Grow by 2.6% in 2.6% in 2026 After 2.2% Growth in 2025, Driven by PPI in Residential and Non-residential Construction and Transport Infrastructure
Research and Markets
Thu, February 26, 2026 at 12:23 AM GMT+9 4 min read
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The Canadian construction industry presents opportunities in residential and institutional sectors, bolstered by investments in infrastructure and housing initiatives. Despite short-term challenges from US tariffs, growth is expected, supported by government projects for regional connectivity and renewable energy.
Dublin, Feb. 25, 2026 (GLOBE NEWSWIRE) – The “Canada Construction Market Size, Trends, and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis to 2029 (Q4 2025)” report has been added to ** ResearchAndMarkets.com’s** offering.
Construction industry in Canada to expand by 2.2% in real terms in 2025 and then grow by a further 2.6% in 2026
The sector will be supported by public and private sector investments in residential and non-residential construction, coupled with increase in investment in transport infrastructure. The total investment in building construction grew by 4.5% year on year (YoY) during the first nine months of 2025, according to Statistics Canada.
By segment, residential construction grew by 6.8% YoY and institutional construction grew by 6% YoY in January-September 2025. However, the Canadian construction industry is expected to face challenges in short term, due to the ongoing political tensions between Canada and the US, following President Donald Trump’s punitive tariff measures. President Donald Trump announced an additional 10% tariff on Canadian goods, raising the total tariff on many Canadian imports to 35%.
Among the most severe measures were duties on key construction materials - steel, aluminum, and lumber -disproportionately affecting the construction industry. According to Statistics Canada, the total value of building permits issued declined by 2.1% YoY in the first nine months of 2025. By segments, the total value of residential building permits registered a muted performance, while the value of non-residential building permits fell by 5.3% YoY in January-September 2025.
Over the remainder of the forecast period, the Canadian construction industry is expected to register an annual average rate of 2.8% from 2026 to 2029. Construction growth will be supported by government investments to improve regional connectivity, increase renewable energy provisions, and increase investments for affordable housing projects. Prime Minister Mark Carney launched the federal Build Canada Homes agency in mid-September 2025 with the aim of supporting the construction of transitional and supportive housing.
The plans include building 4,000 homes on six federally owned sites, with an investment worth CAD13 billion ($9.5 billion) which is planned to start from 2026. Furthermore, under Canada’s National Housing Strategy, a 10-year initiative launched in 2017, the government is planning to build 60,000 new housing units and as well as renew 170,000 housing units by 2029. Total investment for the project is expected to be CAD14.6 billion ($10.8 billion). As of March 2025, 20,139 units of the planned total are currently under construction and 19,496 units have now been completed.
Report Scope
Reasons to Buy
Key Topics Covered:
1 Executive Summary
2 Construction Industry: At-a-Glance
3 Context
3.1 Economic Performance
3.2 Political Environment and Policy
3.3 Demographics
3.4 Risk Profile
4 Construction Outlook
4.1 All Construction
4.2 Commercial Construction
4.3 Industrial Construction
4.4 Infrastructure Construction
4.5 Energy and Utilities Construction
4.6 Institutional Construction
4.7 Residential Construction
5 Key Industry Participants
5.1 Contractors
5.2 Consultants
6 Construction Market Data
7 Appendix
For more information about this report visit
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