The construction industry is entering a period of accelerated transformation driven by shifting market demands, sustainability requirements, labour shortages, and rapid technological adoption. As companies navigate economic uncertainty and evolving regulatory pressures, several emerging trends are expected to influence how projects are planned, built, and delivered in the coming years.
As Canada continues to face mounting housing shortages and affordability pressures, industry experts point to prefabricated and modular construction as a scalable solution. Faster build times, controlled factory production, and reduced labour requirements make modular housing an increasingly attractive option for governments and developers.
UBC is collaborating with governments, builders and community partners to accelerate the development of affordable housing across British Columbia. By combining research expertise with innovative construction approaches, these partnerships aim to reduce costs, shorten project timelines, and expand access to sustainable homes for residents.
Canada’s residential construction sector continues to face significant pressures as builders navigate high interest rates, labour shortages, and elevated material costs. Despite strong housing demand, these economic factors are slowing project starts and contributing to worsening affordability across many regions.
Amid economic uncertainty and shifting market conditions, Canada’s construction sector faces a mix of opportunities and pressures in 2025. The report highlights how rising material and labour costs, changing demand dynamics, and regulatory shifts could influence upcoming construction starts, project delivery timelines, and long-term industry recovery.
Canada’s construction industry is shifting rapidly as new technologies, regulatory changes, labour dynamics and market pressures reshape how companies plan and build. From advanced digitization and sustainable materials to workforce evolution and infrastructure investment, these emerging trends are expected to influence productivity, profitability and long-term sector resilience throughout 2025.

Canadian homeowners are increasingly prioritizing functionality, sustainability, and comfort in their living spaces. This year’s top design trends highlight a shift toward eco-friendly materials, multipurpose layouts, smart-home technology, and natural, calming aesthetics that support healthier, more flexible lifestyles.

Canada’s largest metropolitan areas experienced varied housing start patterns in 2023. While some cities saw increases driven by strong rental demand and project pipelines established in previous years, others faced declines due to financing challenges, labour shortages, and shifting market conditions.

New homebuilding in Canada’s six largest metro areas stayed strong in 2023, with apartment starts surging on earlier financing conditions and government support. Despite this, new supply is still not keeping up with demand, worsening affordability.

Industrial construction remains one of Canada’s most resilient sectors, with record completions in late 2023 and expectations for ongoing demand despite higher interest rates and inflation.

A large share of Canadian construction is tied to resource extraction and exports, where strong export volumes relative to imports make a meaningful contribution to GDP.

Construction starts in Canada fell more than 12% in 2022 across residential, non-residential and civil sectors, with declines in new homebuilding reflecting broader house-price corrections.

Winter safety on job sites requires identifying seasonal hazards in advance and building standardized plans that address how cold, ice and weather shifts affect daily site operations.

StatCan reports that construction cost growth has slowed compared to the previous 18 months, but skilled labour shortages and high wages are still key cost drivers.

Inflation, supply chain delays and labour shortages are creating ongoing uncertainty for construction and roofing, influencing project timelines, material prices and insurance premiums.

Canada’s construction sector employs about 1.2 million people and is poised for further expansion as immigration, population growth and infrastructure needs continue to rise.

Despite supply chain and labour constraints, investment in both residential and non-residential construction has rebounded after early pandemic slowdowns.

The VRCA’s Awards of Excellence gala highlighted standout projects, companies and leaders across British Columbia’s construction industry.

Altus Group’s 2022 Canadian Cost Guide shows that building a new house in Vancouver is now more expensive than in any other Canadian city, with costs rising sharply from 2020 to 2021.

A ranking of major construction project starts across Canada, highlighting high-profile jobs and where large-scale work is breaking ground.

The federal government outlines plans to help municipalities deliver 100,000 new middle-class homes by 2025.

The article examines how climate change is altering the conditions buildings were designed for, and what this means for performance and safety over time.

After shrinking 3.4% in 2020, Canada’s construction sector is forecast to return to modest growth in 2021, supported by stronger-than-expected housing activity.

In a national survey, most construction firms say they are not exploring new digital business models and rate their own digital maturity as under-developed.

BuildForce Canada projects that construction activity will rebound in 2021 and grow through the decade following the pandemic-driven slowdown.

The Canadian Construction Association introduces its 2021–22 board, with Ray Bassett taking on the role of chair.

Nearly two years after passing, the Federal Prompt Payment for Construction Work Act still lacks a coming-into-force date, leaving the industry waiting.

Mike Fawcett of Brock White becomes BCCA chair, bringing long-time board experience to the leadership role.

Housing starts rose for a third straight month in August, driven by multi-family projects in Ontario, though starts are expected to ease later due to COVID-19 impacts.

A BCIT study for the Vancouver Economic Commission identifies 66 “contech” companies in the city and highlights the growing scale of the local construction-tech ecosystem.
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