Toronto's residential construction costs rise 0.4% in third quarter

Building homes in Toronto is getting dearer, but more slowly than in most big Canadian cities. Statistics Canada said Toronto’s residential construction costs rose 0.4% in the third quarter of 2026, against 0.8% nationally.

Statistics Canada’s index tracks what contractors charge to build new buildings in 15 metro areas, including Toronto. It excludes taxes and the costs of land, building design and real estate fees, so it is not the price buyers pay.

Builders said higher material, fuel, transportation and labour expenses drove the increases. Canadian retaliatory tariffs on US products, at 15% to 50%, also raised material costs, with 50% on some steel and aluminum products.

For context, Toronto apartment starts, meaning homes on which building began, fell to 18,986 in 2025 from 28,162 in 2024, the lowest since 2014.

The latest tariffs took effect on September 8, 2026, late in the quarter.

Sources: Statistics Canada