Labour and material costs are on the rise in British Columbia, reports the BCCA. (Image courtesy of BCCA)
The latest data from the British Columbia Construction Association’s (BCCA) Fall 2025 Stat Pack, a semi-annual report examining leading economic and labour conditions across British Columbia’s construction sector, indicates that construction material costs have increased by four per cent year-over-year, twice the Bank of Canada’s inflation target.
According to the association, these sustained cost increases are raising the overall cost of building at a time when trade uncertainty and other pressures continue to contribute to B.C.’s affordability challenges.
Despite the rising costs, sector activity remains steady. Industrial, commercial, and institutional (ICI) permit values are up nine per cent year over year, and the number of multi-unit residential permits issued is up 10 per cent, reports BCCA.
“While overall inflation in B.C. and Canada has cooled, we continue to see construction material costs rise at a higher rate in B.C.’s construction sector,” said BCCA president Chris Atchison. “These pressures are driving construction costs higher at a time when trade uncertainty is already causing many to rethink their investments, creating a secondary impact across the industry.”
B.C.’s construction sector remains a key driver of the provincial economy. The association says the sector contributes 9.2 per cent of GDP and employs over 267,000 people.
The release of the Stat Pack comes as the provincial government has introduced Prompt Payment legislation. The legislation is designed to ensure workers and businesses are paid on time for completed work, bringing British Columbia in line with other provinces across Canada. BCCA has been a leading advocate on this issue and continues to champion the Bill’s passage.
“There are many external pressures on our industry that we cannot control, but advocating for prompt payment and fairness across our industry is something we can,” added Atchison. “We look forward to working with the government to advance this legislation and provide contractors with relief from the ongoing pressures created by trade and payment uncertainty.”
To check out the Fall 2025 BC Construction Industry Stat Pack, visit www.bccassn.com/2025FallStatPack.
