Renos Take Larger Share of Construction Spending

Jun 18, 2026

Residential renovation work took on a greater role in the first quarter of 2026, compared to Q1 2025, while new construction continued to drive several major categories. National figures point to a construction sector moving unevenly, with varying pressures across single-family housing, multi-unit residential projects, commercial buildings and institutional work.

Investment in new single-dwelling construction is declining, while more capital is being directed toward renovations. Spending on new construction fell to $5.79 billion from $6.35 billion, a decline of about 8.9 per cent. Renovation spending in the same category moved in the opposite direction, rising to $10.68 billion from $9.56 billion, an increase of roughly 11.9 per cent.

Multi-dwelling construction remains the largest national new-build category. Spending increased to $14.97 billion from $14.51 billion, up 3.1 per cent. Renovation spending in the category moved in the opposite direction, declining to $8.1 from $8.49 billion, a decrease of 4.6 per cent.

Ontario remains the biggest market but its residential figures weakened. Residential new construction dropped to $6.47 billion from $7.67 billion, while residential renovation spending declined to $7.58 billion from $8.28 billion. Despite those decreases, Ontario still recorded the highest residential renovation total among the provinces.

British Columbia posted growth in residential new construction and renovation. Residential new construction increased to $4.12 billion from $3.82 billion, and residential renovation rose to $2.41 billion from $2.04 billion.

Alberta’s numbers show a different split. While residential new construction rose to $3.73 billion from $3.44 billion, residential renovation spending fell sharply to $973 million from $1.61 billion.

Quebec saw renovation take a larger role in residential work, rising to $5.24 billion from $4.06 billion. Residential construction increased to $4.16 billion from $3.92 billion.

Manitoba and Saskatchewan posted gains across both categories, with renovation still ahead of new residential construction. Together, residential renovation rose to $1.27 billion from $938 million, and residential new construction increased to $1.06 billion from $841 million.

Atlantic Canada was mixed. Residential new construction declined slightly to $1.09 billion from $1.12 billion. Residential renovation rose to $1.16 billion from $1.07 billion.

Tyler Holt is the editor of Wood Industry magazine. He has a master’s degree in literature and publication, and years of experience in the publishing and digital media industry. His main area of study is the effect of digital technologies on industrial and networked production.