Outlook of Canada’s Construction Market
While other industries are slowly regaining normalcy, construction has bolted out of the starting blocks. It has made a full recovery with projections of exponential growth.
A recently conducted Canadian Construction Industry Outlook 2022-2026, Canada Construction Industry Databook Series – Market Size & Forecast by Value and Volume (area and units) across 40+ Market Segments in Residential, Commercial, Industrial, Institutional, and Infrastructure Construction, Q1 2022 Update cites that the construction in Canada has not merely rebounded but is poised to grow by 8.8% coupled by a total earning of CAD 190,860 million by the end of 2022.
The study presents an optimistic forecast of the Canadian construction industry experiencing consistent growth over the next 4 years, with an estimated CAGR increase of 5% from 2022 to 2026. The construction output in the country is slated to rise to a whopping CAD 232,243.2 million by 2026.
The study highlights that low-interest rates, pent-up savings, and an economic expansion were significant factors that led to an unprecedented growth spurt in the construction market in Canada.
These contributing tenets have directly impacted the economy’s resilience, ultimately leading to recovery. With the value of building permits exponentially rising in costs, peaking at more than US$10 billion in Q2 2021, growth in the building activity is centered around 3 primary components – residential, industrial, and commercial office.
- Residential housing in Canada is experiencing growth in all aspects, from single-family homes to condominiums. Furthermore, the continuous increase in the urban population guarantees a need for more apartment-style housing.
- With the growing need for physical goods and limited space, industrial construction will continue to grow. In December 2021, there was 36 million square feet of industrial construction underway.
- Despite the pandemic, the study purports that commercial building construction will continue to rise, with 19 million square feet of office space under construction across the country.
Additionally, the economy stands to be positively impacted by planned large-scale infrastructure projects such as the rehabilitation of the railway transit corridor with an investment of US$15.705 billion and a completion timeline of 2025.
This and other investments will see the Canadian Construction market surpass expectations.
