The cost of rebuilding a house in Canada has gone up again.
In its most recent report, Opta found that rebuilding costs in Canada increased by 6.4 percent from May 2020 to May 2021.
"Material supply shortages—mostly lumber, project delays, and the continued effects of the pandemic continue to affect reconstruction costs. Major rebuilders have weathered the uncertainty with lower price volatility than smaller operators but all have experienced a general upturn in year over year costs. At this time, there is no clarity on when this situation will end, and most operators have resigned themselves to another year of supply issues,” Opta states in its Q2 2021 report.
Other factors
Several other factors are also affecting reconstruction costs in Canada, Opta forecasters add. “Lumber supplies and costs continue to create challenges. A recovery in the US housing market, fewer allowable cuts in British Columbia, a sustained home renovation demand across Canada, and additional railway freight fees from Canadian Pacific Railway (up to $500 per intermodal container) are just some of the cost factors in play,” the report reads.
Inflation of lumber prices is another cost driver: “With overall year over year lumber price increases of 120 per cent – 140 per cent already recorded, there’s a likelihood that another 25 per cent – 35 per cent will be added this year. It should be noted that while material pricing is rapidly rising, wage increases are not,” the prevention experts point out.
