The cost to build a new residential home has skyrocketed 51 percent since the start of COVID, causing higher prices during what is already a severe housing crisis, according to a new report by the Royal Bank of Canada (RBC).
The June 27 report by RBC economists Robert Hogue and Rachel Battaglia said the increase in Canada’s residential construction price index has put “new pressure on home prices.”
“Construction costs have gone through the roof,” said the report, stating that the cost of building a home in Canada, up 51 percent since quarter one of 2020, has never been higher. Meanwhile, booming population growth and ambitious immigration targets are increasing demand for housing across the country….