Good morning! Welcome back to Queen Street Analytics' weekly roundup of regulatory developments, legislative discussions, political announcements and other government-related news related to residential and commercial construction and infrastructure, and related government initiatives.

Every Monday, we break down the most important updates in this space in under five minutes.

Start Date: 2025-03-30
End Date: 2025-04-05

Top Headlines

Main Stories

Government Unveils Ambitious Housing Strategy

MP Nathaniel Erskine-Smith announced a comprehensive housing strategy aimed at reducing construction costs and increasing affordable housing. Key measures include $25 billion in debt financing for prefabricated home builders, halving municipal development charges for multi-unit residential housing, and reintroducing the MURB capital cost allowance tax incentive. These steps are intended to expedite the approval process and harmonize building codes. MP Francesco Sorbara echoed these plans, highlighting the government's goal to double the pace of home construction to 500,000 new homes.

Sources: Social Media: x.com, Social Media: x.com, Social Media: x.com

Residential Renovation Costs Show Minimal Increase

The Residential Renovation Price Index for the fourth quarter of 2024 indicated a 0.5% increase in renovation costs, marking the smallest quarterly rise since the second quarter of 2020. This follows a 0.6% increase in the previous quarter. The data suggests a stabilization in renovation costs, which could impact budgeting and planning for construction projects.

Sources: Open Government Data Set: www.statcan.gc.ca

Trade Tensions Over U.S. Softwood Lumber Duties

Ontario's Associate Minister of Forestry, Kevin Holland, criticized the U.S. decision to raise duty rates on Canadian softwood lumber exports. The increased tariffs are expected to raise construction costs and impact housing affordability in the U.S. The duties are seen as detrimental to Ontario's forestry sector, which generated $23 billion in revenue in 2022.

Sources: Provincial Announcement: news.ontario.ca

Important Updates

Secondary Stories

Lumber Production Sees Significant Monthly Increase

Statistics Canada reported a 16.2% increase in lumber production from December to January, totaling 3,871.6 thousand cubic metres. Despite the monthly rise, production is still down 3.1% compared to January 2024. This data may affect supply chain decisions and pricing strategies in the construction sector.

Sources: Open Government Data Set: www.statcan.gc.ca

Real Estate and Property Management Revenue Growth

The real estate rental and leasing sector saw a 6.3% revenue increase in 2023, driven by population growth and demand for logistic centres.

Sources: Open Government Data Set: www.statcan.gc.ca

Nova Scotia Construction Employment Projections

Nova Scotia's residential sector is expected to drive construction employment growth through 2034, maintaining a balanced labor market.

Sources: Canadian News Outlet: www.theglobeandmail.com

Manitoba Construction Sector Growth Forecast

Manitoba's construction sector is projected to experience healthy growth in both residential and non-residential activities by 2034.

Sources: Canadian News Outlet: www.theglobeandmail.com

PEI Construction Industry Employment Trends

PEI's construction industry is set to see employment growth driven by the residential sector, with balanced labor markets expected.

Sources: Canadian News Outlet: www.theglobeandmail.com

New Brunswick Construction Sector Challenges

New Brunswick's construction sector is forecasted for growth, but replacing retiring workers may pose challenges.

Sources: Canadian News Outlet: www.theglobeandmail.com

Provincial Announcements

Alberta Advocates for Wood Products in Texas

Minister Todd Loewen is leading a delegation to Texas to promote Alberta's wood products and advocate for fair trade practices.

Sources: Provincial Announcement: www.alberta.ca

Alberta Funds Road Improvements for Agrifood Sector

Alberta announced $1.8 million for road improvements in the County of Newell to support the agrifood sector and enhance safety.

Sources: Provincial Announcement: www.alberta.ca

Public Officials' Social Media

Erskine-Smith Discusses Housing Plan

Nathaniel Erskine-Smith tweeted about the government's comprehensive plan to address housing costs and boost affordable housing construction.

Sources: Social Media: x.com

Vuong Criticizes Immigration Policy

Kevin Vuong expressed concerns about immigration policies affecting the availability of tradespeople for housing construction.

Sources: Social Media: x.com

Jaczek Highlights Federal Role in Homebuilding

Helena Jaczek tweeted about the federal government's commitment to doubling housing construction pace with the Build Canada Homes initiative.

Sources: Social Media: x.com

Rood Criticizes Liberal Housing Strategy

Lianne Rood criticized the Liberal housing strategy, arguing that increased bureaucracy won't solve the housing crisis.

Sources: Social Media: x.com

What We're Reading This Week

• Construction Industry Seeks Clarity on Housing Promises: Industry professionals express need for detailed plans rather than general statements.
• Renewed Residential Activity Boosts Construction Demand: Construction demands are projected to rise significantly through 2034.
• Toronto's Shift to Purpose-Built Rentals: The city is focusing on purpose-built rental buildings to address housing needs.
• Affordable Housing: What Canadians Need: An exploration of what it takes to secure affordable housing in Canada.