Investment in Canada’s residential sector will move past a mostly stagnant 2025 into a steady series of increases from 2026 to 2034, according to the 2025–2034 Construction and Maintenance Looking Forward forecast published by BuildForce Canada.
The forecast predicts residential construction activity will be fueled by the easing of interest rate pressures and a pent-up demand by prospective buyers. While new housing construction is forecast to slow in the latter part of the next eight years, investment growth is projected to expand due to increased activity in residential renovations.
As for non-residential construction investment, the forecast is projecting a forecast peak in 2027 with the culmination of commercial property and engineering construction projects, with investment slowing into 2030.
The forecast also predicts residential sector construction employment will increase by 6% from 2024 levels to 2034, with gains concentrated in the renovations and maintenance sub-components, while non-residential employment will rise by approximately 8% during the same period.
“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, chairman 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 labor 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.”
