Residential renovation prices up nationwide

While home prices have weakened in recent quarters, renovation costs increased 0.9% in the second quarter of 2025 after a 0.3% increase in the first quarter, Statistics Canada said Friday.

Last month, the national statistical agency reported that the New Housing Price Index fell 0.2% nationwide in June. Prices were down in 12 of the 27 metropolitan areas tracked by the index, led by a 0.9% drop in Sudbury, Ont., and a 0.8% decline in Calgary.

Additionally, both the Canadian Real Estate Association and Fitch downgraded their housing forecast this summer.

Residential renovation prices were up in all 15 census metropolitan areas measured, with Quebec leading at 3%, followed by Regina and Saskatoon (both 2.2%). Toronto saw the smallest quarterly increase at 0.3%.

Among provinces, Saskatchewan recorded the largest quarterly cost increase at 2.2%, followed by Newfoundland and Labrador (1.8%). Saskatchewan also posted the largest year-over-year growth at 4.8%, followed by Alberta (4.1%) and Quebec (3.5%).

U.S. tariffs, including a 25% tariff on steel, aluminum, iron, appliances and textiles, contributed to renovation cost increases across the country. Projects such as installing solar panels, replacing heat pumps, installing new furnaces and replacing carpet saw some of the largest increases. Other projects, such as windows and doors and flooring, saw smaller increases.

Jonathan Got

Jonathan Got is a reporter with Advisor.ca and its sister publication, Investment Executive. Reach him at jonathan@newcom.ca.