| Study Period | 2020 - 2030 |
| Base Year For Estimation | 2024 |
| Forecast Data Period | 2025 - 2030 |
| Market Size (2025) | USD 161.15 Billion |
| Market Size (2030) | USD 228.89 Billion |
| CAGR (2025 - 2030) | 7.27% |
| Market Concentration | Low |
Major Players*Disclaimer: Major Players sorted in no particular order |
Canada Residential Construction Market Analysis
The Canada Residential Construction Market size is estimated at USD 161.15 billion in 2025, and is expected to reach USD 228.89 billion by 2030, at a CAGR of 7.27% during the forecast period (2025-2030).
- Before the pandemic, urban development and a growing population, bolstered by immigration, fueled steady market growth. Yet, with the arrival of COVID-19, supply chains and labor availability faced disruptions, leading to delays and heightened costs. Nevertheless, government stimulus initiatives and historically low interest rates ignited a housing demand surge, particularly in suburban and rural locales.
- Post-pandemic, inflation, rising interest rates, and labor shortages have posed challenges to the sector, affecting both affordability and construction timelines. Recent reports underscore the hurdles confronting Canada's residential construction market, particularly highlighted by the erratic building permit data. A significant -7.0% drop in October 2024 serves as a warning sign of a potential deceleration in construction activity, probably swayed by economic strains and supply chain interruptions as reported by investing.com . These uncertainties not only muddle project planning but also exacerbate the persistent housing shortage.
- In response to these challenges, the Government of Canada introduced the Regional Homebuilding Innovation Initiative (RHII) in November 2024. The RHII is designed to address the nation's housing shortage by fostering innovation in residential construction. This includes supporting local manufacturers, advocating for new homebuilding techniques, and enhancing market productivity. Overseen by Canada's regional development agencies (RDAs), the initiative aims to modernize home construction methods to better meet the evolving needs of communities across the country.
- In October 2024, Sustainable Buildings Canada (SBC), in partnership with Natural Resources Canada (NRCan), launched two multi-year projects aimed at bolstering sustainability in Canada's built environment. The Codes Acceleration Project is set to assist Building Officials nationwide in adopting advanced building codes for new constructions. Meanwhile, the EnergySPRING program will aid Ontario's Social Housing and Indigenous Communities in executing deep-energy retrofits for their low-rise multi-unit residential buildings.
Canada Residential Construction Market Trends
Quebec Takes Major Strides to Enhance Residential Construction in Canada
- Targeting Quebec's multi-unit residential construction sector, the Regional Homebuilding Innovation Initiative's (RHII) investment is set to bolster local manufacturer's productivity and capabilities. This move dovetails with the Government of Canada's Housing Plan, which aspires to expedite home construction as a remedy to the housing crisis. By championing innovation and productivity, the government envisions a robust and efficient housing market.
- The investment is poised to empower local businesses and communities, enabling them to address resident's housing needs more promptly. Minister underscored the RHII's pivotal role in the government's strategy to combat the housing crisis. With this initiative, Quebec manufacturers can adopt cutting-edge techniques, accelerating the construction timeline and enhancing home quality.
- Quebec's innovative SMEs and NPOs, particularly those in the multi-unit residential construction realm, are invited to engage with the RHII. By empowering these entities, the RHII seeks to deliver community-specific solutions, bolstering Canada's commitment to resolving its housing challenges.
- In conclusion, the Government of Canada's 10.45 million CAD (7.49 million USD Approximately) investment in the RHII represents a significant step towards addressing the housing shortage in Quebec. By fostering innovation and enhancing productivity in the residential construction sector, this initiative aims to create sustainable and efficient housing solutions that meet the needs of communities across the province.
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Surge in Apartment and Condominium Constructions Driving the Market
- In 2024, Canada’s residential construction market is being propelled by a surge in apartment and condominium constructions, signaling a notable evolution in housing preferences and urban development tactics. According to Canadian Real Estate Wealth's October 2024 report, housing starts in Canada's six largest census metropolitan areas (CMAs) climbed by 4% in the first half of 2024, with apartments constituting a dominant 72% of all new constructions. This trend underscores a growing dependence on multi-unit residential buildings to cater to escalating urban populations and housing needs, especially in major cities like Toronto, Vancouver, Calgary, Edmonton, Ottawa, and Montreal.
- Despite facing some hurdles, Toronto's appetite for condominiums remains strong. The city has recorded a significant uptick in rental constructions, which represented 47% of all housing starts in 2024. This pivot towards rentals can be attributed to affordability challenges, making home ownership a distant dream for many. Consequently, developers are channeling their efforts into apartment buildings to satiate this burgeoning demand. Notably, Toronto's rental market saw a robust activity with 22,891 purpose-built rental units initiated in just the first half of 2024, as per Canadian Real Estate Wealth.
- Apartment constructions are on the rise in both Calgary and Edmonton. Here, the uptick in condominium projects can be linked to buoyant economic conditions and a heightened demand for urban residences. Reports highlight a 30% surge in Calgary's new condominium projects year-on-year, a testament to its economic rebound and population influx, as noted in the CMHC Housing Supply Report, 2024. This momentum signals a wider trend towards high-density living, prized for its proximity to urban conveniences.
- Montreal is taking the lead in rental housing constructions, boasting an impressive 106% surge in rental unit initiations from 2023, as detailed in the CMHC Housing Supply Report, 2024. This uptick is in sync with Montreal's strategic aim to cater to its growing populace and mitigate housing shortages. With a focus on amplifying apartment constructions, Montreal is positioning itself as a magnet for newcomers in search of affordable living, solidifying its stature in Canada's residential construction arena.
- In conclusion, the surge in apartment and condominium constructions is reshaping Canada's residential construction landscape. As urban populations swell and preferences tilt towards rentals, developers are strategically pivoting, underscoring the indispensable role of multi-unit dwellings in addressing housing needs across Canada's urban centers.
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Canada Residential Construction Industry Overview
The Canadian residential construction Market is fragmented and highly competitive, with the presence of major local and international players. However, the increasing government investments in the sector are creating opportunities for small and medium players. Major players in the market include PCL Construction, EllisDon Corporation, Ledcor Group of Companies, Aecon Group Inc., and Graham Construction. As the market continues to unveil growth opportunities during the forecast period, competition is set to intensify. Major players are vying for a larger slice of the market share, resulting in a landscape devoid of noticeable consolidation.
In a bid to boost effectiveness, companies are joining hands. For instance, in the collaboration of The Well project in Toronto in 2023, where developers such as Tridel, Allied Properties REIT, and Rogers Real Estate Development Limited united to craft a vast, mixed-use development.
Canada Residential Construction Market Leaders
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PCL Construction
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EllisDon Corporation
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Ledcor Group of Companies
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Aecon Group Inc.
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Graham Construction
- *Disclaimer: Major Players sorted in no particular order
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Canada Residential Construction Market News
- July 2024: Reflect Architecture, a Toronto-based firm, has transformed two century-old saltbox houses into a versatile vacation retreat on a Newfoundland peninsula, accessible only by boat or foot. The residence showcases simple rectangular volumes topped with gabled roofs. While the original white exterior siding was replaced, a galvanized steel roof was seamlessly integrated, echoing the traditional shiplap cladding and gabled roof of the original structures. The architect selected materials typical to the region. Kitchen cabinets and surfaces were crafted from Baltic birch ply. Interiors of both houses, predominantly lined with white shiplap, reflect the traditional Newfoundland homebuilding style. Dunn House underwent a more extensive renovation, featuring new boarding that matches the original design. The slightly larger Burden House acts as the primary residence, with spaces tailored for entertaining, while Dunn House serves as the guest house.
- September 2024: GROW, a 20-unit multi-residential housing initiative, fosters a vibrant inner-city community. Its diverse unit sizes cater to various demographics, complemented by a 0.2-ha (0.6-acre) rooftop urban farm. This urban farm, featuring private gardens, vegetative roofs, and apiaries, immerses residents in urban horticulture. The housing units, ranging from compact 42-m2 (450-sf) studios to spacious 79 to 93 m2 (850 to 1,000 sf) two-storey townhomes, accommodate a spectrum of ages and family sizes. Residents, spanning the entire demographic spectrum, actively engage in farming activities, from spring planting and daily maintenance to harvesting, fostering connections with Calgary's broader community. The project is brought to life by the Modern Office of Design + Architecture.
Canada Residential Construction Industry Segmentation
Residential construction is a process that involves the expansion, renovation, or construction of a new home or spaces intended to be occupied for residential purposes. These structures range from single-family homes and multi-family units to townhouses, condominiums, and apartment buildings. The Canadian residential construction market is segmented by type (apartments/condominiums and villas/landed houses), and by key city (Edmonton, Calgary, Toronto, Vancouver, Ottawa, Montreal, and Rest of Canada). The Report Offers Market Sizes (USD) and Forecasts for all the Above Segments.
| By Type | Apartments/Condominiums |
| Villas/Landed Houses | |
| By Key City | Edmonton |
| Calgary | |
| Toronto | |
| Vancouver | |
| Ottawa | |
| Montreal | |
| Rest Of Canada |
By Type
| Apartments/Condominiums |
| Villas/Landed Houses |
By Key City
| Edmonton |
| Calgary |
| Toronto |
| Vancouver |
| Ottawa |
| Montreal |
| Rest Of Canada |
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Canada Residential Construction Market Research FAQs
How big is the Canada Residential Construction Market?
The Canada Residential Construction Market size is expected to reach USD 161.15 billion in 2025 and grow at a CAGR of 7.27% to reach USD 228.89 billion by 2030.
What is the current Canada Residential Construction Market size?
In 2025, the Canada Residential Construction Market size is expected to reach USD 161.15 billion.
Who are the key players in Canada Residential Construction Market?
PCL Construction, EllisDon Corporation, Ledcor Group of Companies, Aecon Group Inc. and Graham Construction are the major companies operating in the Canada Residential Construction Market.
What years does this Canada Residential Construction Market cover, and what was the market size in 2024?
In 2024, the Canada Residential Construction Market size was estimated at USD 149.43 billion. The report covers the Canada Residential Construction Market historical market size for years: 2020, 2021, 2022, 2023 and 2024. The report also forecasts the Canada Residential Construction Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
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Canada Residential Construction Industry Report
Statistics for the 2025 Canada Residential Construction market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Canada Residential Construction analysis includes a market forecast outlook for 2025 to 2030 and historical overview. Get a sample of this industry analysis as a free report PDF download.
