Ontario Construction News staff writer
Construction investment across Canada increased modestly in 2024, with both the residential and non-residential sectors showing growth, according to a new report from BuildForce Canada.
The residential sector, which had been in decline since its peak in 2021 due to rising interest rates and affordability issues, saw a return to growth last year. While investment in new housing continued to contract, the rise in residential renovations offset these losses.
The non-residential sector, on the other hand, has seen consistent growth since 2021, with another increase recorded in 2024. This was driven by activity in industrial, commercial and institutional (ICI) buildings, particularly in healthcare and education projects. However, investment in engineering construction saw a slight dip as major projects approached completion.
BuildForce Canada released its 2025–2034 Construction and Maintenance Looking Forward national forecast, showing that after remaining largely unchanged in 2025, investment in the residential sector is projected to chart a steady series of increases from 2026 to 2034. Activity is driven initially by strong demand for new-housing construction as interest rate pressures ease, and pent-up demand brings consumers back to the market. Although later years see new-housing construction growth slow, investment growth is projected to be driven by strong levels of activity in residential renovations.
“Construction is a key contributor to Canada’s economic output, accounting for 7% of our national gross domestic product, and employing 1.6 million people, or about one in every 13 working Canadians,” said Sean Strickland, Chair of BuildForce Canada. “While our industry has been successful in recent years with promoting careers in construction to key demographics such as women and young people, we cannot ignore the labour force pressures that are being created by not only growing demand for construction activity across the country, but also the imminent retirement of a large number of older, experienced workers.”
In 2023, there were about 217,700 women employed in Canada’s construction industry. That figure represented an increase of nearly 7,000 workers from 2022. Of them, 29% worked directly in on-site construction. However, as a share of the total 1.21 million tradespeople employed in the industry, women accounted for just 5% of the on-site construction workforce.
The Indigenous population is another under-represented group that presents recruitment opportunities. In 2023, Indigenous People accounted for 5.2% of Canada’s construction labour force, which is a slight increase from the 4.4% observed in 2014, and is notably higher than the 3.9% represented in the overall labour force. As the Indigenous population continues to grow, the sector must continue to work with Indigenous communities to promote career opportunities to their youth and invest in initiatives that foster long-term retention and a welcoming workplace environment where they can build fulfilling careers.
Looking forward, BuildForce Canada’s national forecast for 2025 to 2034 predicts steady growth in construction investment across both sectors.
Residential investment is expected to remain stable in 2025 before seeing gradual increases from 2026 onward, driven by pent-up demand and easing interest rates. While new housing construction growth will slow in the later years, renovation activity is expected to remain strong.
The non-residential sector is projected to see fluctuations, with a peak in 2027 driven by projects in transit, utilities, and ICI buildings. After a slight slowdown in 2030, investment is expected to rise again in line with population growth and economic demands.
The forecast also highlights the growing need for workers to meet the demands of the expanding construction industry. Residential-sector employment is projected to rise by 6% by 2034, with most of the growth in renovations and maintenance. Non-residential employment is expected to grow by 8%, with the biggest gains in ICI buildings and maintenance.
However, the industry faces significant labour force challenges, as an estimated 270,000 experienced workers are set to retire over the next decade. With increasing demand for construction, there will be a need to recruit and train new workers, particularly from underrepresented groups, including women, Indigenous people and newcomers.
Ontario, Manitoba and Saskatchewan are projected to see steady growth, supported by a combination of population growth, major infrastructure projects, and easing interest rates. Alberta will see strong short-term growth in new housing construction, followed by increased renovation and maintenance activity. Non-residential investment is expected to stabilize before rising in the later years.
The Atlantic provinces reported increased construction activity in 2024, with growth in both residential and non-residential sectors. Non-residential investment in Newfoundland and Labrador, Nova Scotia and New Brunswick is expected to remain strong, driven by major projects such as offshore oil developments and hydrogen initiatives.
In Quebec, residential construction is expected to stabilize, while the non-residential sector will remain elevated in the short term before tapering off in the early 2030s.
In its report, BuildForce emphasizes the importance of addressing labour shortages
“Construction enjoyed good success at recruiting new workers from among two key demographic groups in 2024: young people and women,” Strickland said. “Employment in the industry among workers aged 15 to 24 years grew by 19% last year, while it rose by 5% among women of all ages. Both increases compare favourably to the overall employment increase of 1.8% seen in the industry last year.
“Our efforts now should be focused on building on these successes and bringing in more workers from other traditionally under-represented groups, including Indigenous People and newcomers to Canada.”