Alberta poised to lead Canada in economic growth in 2024: RLB Report
International property and construction consultancy firm Rider Levett Bucknall (RLB) has released its latest Crane Index and Quarterly Cost Report, which provides a perspective on the North American construction industry in 14 key markets including two Canadian cities, Toronto and Alberta.
The latest RLB quarterly cost report, with data current to mid-Q3 2024, shows that the national average increase in construction costs was 1.07 percent, the lowest it’s been in the last three years.
According to the report, Alberta is poised to lead Canada in economic growth in 2024, with a projected GDP growth of 2.5 per cent in 2024 and 2.7 per cent in 2025, surpassing national rates.
This growth is driven by an expanding energy sector, heightened by increased export capacities and rising oil prices. Despite challenges from high interest rates and consumer prices, Alberta’s population rise boosts housing demand and economic spending, with a notable recovery in residential construction forecasted. Specifically, housing starts in Alberta have surged by 53 per cent year-over-year as of the second quarter of 2024, with significant developments like the $1.2 billion Scotia Place in Calgary.
Meanwhile, Ontario’s construction sector in 2024 will benefit from substantial public and private
investments, including $970 million for water infrastructure and Honda’s $15 billion in EV factories. Infrastructure Ontario reports 25 significant projects underway, totaling over $30 billion. Additionally, the Toronto City Council has approved a $351 million investment to expedite the construction of 18 affordable housing projects, creating nearly 6,000 new rental homes
The Crane Index tracks the number of operating tower cranes in major cities across the U.S. and Canada, and provides a simplified snapshot of the current state of the construction industry’s activity in each metro location. RLB’s quarterly Construction Cost Report (QCR) features construction cost information for 14 U.S. and Canadian markets and provides a statistical view of the industry, detailing indicative construction costs across eight building sectors.
The RLB crane index revealed that Toronto’s numbers decreased from 221 in Q1 to 83 in Q3, while Calgary’s increased from 20 to 24.
“Our research shows that the trend of construction cost inflation continues declining and is the lowest it’s been in three years,” says Paul Brussow, president of RLB North America. “The recent interest rate cut is good news for the construction industry, particularly the private sector. While we won’t see an immediate impact, this move is likely to encourage investment in new projects as we head into 2025.”