Construction of residential homes is on the slide in Canada, as rising costs, tighter financing conditions and weaker demand is causing a decline in activity.
A net -28% of surveyors saw residential activity fall in the third quarter of 2025, the Royal Institution of Chartered Surveyors (RICS) and the Canadian Institute of Quantity Surveyors (CIQS) revealed.
In contrast activity for infrastructure and public works expanded at a net +26%, as sectors benefitting include energy, ICT, social infrastructure, and water & waste.
Sheila Lennon, chief executive of CIQS, said: “The Q3 survey reveals that the Canadian construction sector sits at a critical turning point, where industry confidence is declining despite continued strong infrastructure activity
“Construction firms are challenged by financial constraints, persistent labour shortages, and rising material costs, and while the government’s strong commitment to infrastructure spending in the Fall Budget should theoretically drive industry growth, the true test will be whether that investment is enough to overcome those challenges to deliver real, meaningful impact moving forward.”
Employment expectations have dampened from +17% in Q2 to +5% in Q3, and profit margin forecasts turned negative (from 0% to –9%).
These trends point to subdued confidence as the sector adjusts to economic headwinds, regulatory challenges, and shifting market demand.