Comparing Canada vs US construction costs comes down to two questions: what the cost consultants say a building costs per square foot in each market, and what exchange rate you use to put the numbers side by side. This guide uses published cost-consultant data, Statistics Canada's price indexes and current trade rules, and shows every Canadian figure in both Canadian and US dollars.
An earlier version of this article quoted per-square-foot figures for Toronto, Vancouver and Calgary that it attributed to Altus Group and Turner & Townsend but that did not match either firm's published tables. It also gave the wrong Section 232 tariff rates and an outdated lumber price. We have rebuilt it from the sources below.
The exchange rate
On October 9, 2026, one US dollar bought C$1.4269, according to the Federal Reserve's H.10 exchange rate data (FRED series DEXCAUS). Put the other way, C$1 was worth about US$0.70. All US-dollar conversions in this article use that rate.
The Canadian dollar has weakened over the past five years. In September 2021 the monthly average was C$1.2671 per US dollar, or about US$0.79 per Canadian dollar. That works out to roughly an 11% drop in the loonie's value against the US dollar. A Canadian project with no change in its Canadian-dollar budget costs about 11% less in US-dollar terms than it would have in 2021.
That matters for anyone comparing bids or budgets across the border. A Canadian cost of C$400 per square foot is about US$280 at the current rate, not US$400. If you read a Canadian figure at par, you overstate it by more than 40%.
Cost per square foot: Toronto and Calgary vs US cities
Rider Levett Bucknall's Q2 2026 North America Quarterly Construction Cost Report is useful here because it uses the same method for US and Canadian cities. RLB notes that US figures are hard construction costs in US dollars per square foot of gross floor area, and Canadian figures are hard costs in Canadian dollars per square foot. The US-dollar conversions for Toronto and Calgary are ours, at C$1.4269 per US dollar.
| Building type (RLB, April 2026) | Toronto | Calgary | Chicago | Dallas |
|---|---|---|---|---|
| Prime office | C$315–515 (US$221–361) | C$300–450 (US$210–315) | US$355–580 | US$260–435 |
| Secondary office | C$265–370 (US$186–259) | C$255–305 (US$179–214) | US$215–350 | US$160–235 |
| 5-star hotel | C$450–835 (US$315–585) | C$325–505 (US$228–354) | US$530–810 | US$440–605 |
| 3-star hotel | C$275–325 (US$193–228) | C$245–280 (US$172–196) | US$385–515 | US$310–455 |
| General hospital | C$660–1,025 (US$463–718) | C$730–990 (US$512–694) | US$455–925 | US$485–695 |
What the table shows:
- In US-dollar terms, Toronto prime office space costs less to build than Chicago and overlaps with the lower half of the Dallas range. The earlier version of this article said Toronto "now rivals Chicago." On RLB's numbers, Toronto is cheaper than Chicago for offices and hotels once you convert currency.
- Calgary is the lower-cost of the two Canadian markets RLB tracks for most building types.
- Hospitals are the exception. Both Canadian cities' hospital ranges overlap heavily with Chicago and Dallas even after conversion.
RLB also reports how fast costs are rising. Its comparative cost index rose 4.47% in Toronto and 4.12% in Calgary between April 2025 and April 2026, compared with 1.42% in Chicago and 3.88% in Dallas. Toronto and Calgary are climbing faster than Chicago, which narrows the gap over time unless the currency moves.
Vancouver and other Canadian cities
RLB's quarterly report covers only Toronto and Calgary in Canada. For Vancouver and a wider set of Canadian cities, Turner & Townsend's Canada market intelligence cost guide, dated January 2025 and covering Q4 2024 into 2025, gives hard-cost ranges in Canadian dollars per square foot. It is based on historical data from more than 800 projects and excludes HST/QST, land, fees, permits and development charges.
| Building type (T&T, Jan 2025) | Vancouver | Toronto (GTA) | Calgary |
|---|---|---|---|
| High-rise residential, medium quality | C$325–395 (US$228–277) | C$245–375 (US$172–263) | C$310–360 (US$217–252) |
| Low-rise residential, medium quality | C$295–340 | C$310–365 | C$225–280 |
| Office core and shell, high-rise | C$400–505 (US$280–354) | C$415–540 (US$291–378) | C$370–475 (US$259–333) |
| Warehouses | C$135–240 (US$95–168) | C$85–165 (US$60–116) | C$105–210 (US$74–147) |
These ranges are older than RLB's and come from a different firm with a different method, so do not mix them line for line with the RLB table. They are still useful for relative comparisons within Canada. Vancouver's high-rise residential range starts higher than Toronto's, and Toronto's high-rise office core and shell range tops the three cities.
The earlier version of this article cited "C$390/SF" for a Toronto condo tower and "C$470/SF" for Vancouver office. Neither figure appears in the T&T table, and both have been removed.
How fast Canadian costs are rising
Statistics Canada's building construction price index, released July 24, 2026 for the second quarter, tracks what contractors charge to build a set of model buildings. Year-over-year changes from Q2 2025 to Q2 2026 (StatCan Table 18-10-0289-01):
| Census metropolitan area | Residential | Non-residential |
|---|---|---|
| 15-CMA composite | +2.3% | +3.5% |
| Toronto | +0.1% | +3.2% |
| Vancouver | +0.5% | +1.3% |
| Calgary | -0.5% | +3.9% |
| Montréal | +8.4% | +4.0% |
| Edmonton | +3.1% | +4.0% |
Toronto, Vancouver and Calgary residential construction prices were close to flat, which lines up with a slow condo market. RLB's report notes GTA pre-construction sales at multi-year lows. Non-residential prices rose faster everywhere, and Montréal stands out on the residential side.
For comparison, US input costs are rising much faster. The BLS index of goods inputs to construction was up 11.2% from September 2025 to September 2026, driven by diesel and tariffed metals. See our 2026 construction input cost breakdown.
Labor: union density is the big difference
Statistics Canada reports a 2025 unionization rate of 29.2% for Canadian construction employees, with 30.7% covered by a collective agreement (Table 14-10-0132-01). In the US, the BLS reported a construction union membership rate of 11.1% for 2025. Canadian construction is close to three times as unionized.
Higher union density shapes how labor is priced and procured: more work goes through collective agreements with set wage and benefit packages, and trade jurisdiction rules are more common on large projects. It does not by itself make Canadian building more expensive in US-dollar terms, as the RLB table shows.
The earlier version of this article gave specific journeyperson wage rates for Toronto, Calgary and Chicago electricians and workforce retirement percentages without sources. Those have been removed. For US trade wages, see our union vs non-union wage comparison.
Sales tax: GST and HST
Canadian construction prices are usually quoted before sales tax, and Turner & Townsend's ranges explicitly exclude HST and QST. The tax still lands on the project. Ontario charges a 13% harmonized sales tax (HST), and provinces that are not part of the HST system charge the 5% federal GST plus any provincial sales tax, according to the Canada Revenue Agency's GST/HST rate guidance. Nova Scotia's HST dropped to 14% on April 1, 2025.
Registered businesses can generally recover GST/HST paid on inputs through input tax credits, so on commercial work the tax mostly affects cash flow. On new housing sold to individuals, the tax largely stays with the buyer, subject to rebates. In the US, sales tax rules on construction materials and contracts vary by state. Factor tax in explicitly when comparing a Canadian budget to a US one.
Tariffs and trade
Steel, aluminum and copper
The Congressional Research Service's Section 232 update (IN12519, September 17, 2026) says US tariffs on steel and aluminum are 50% on full value for most covered articles, and a June 1, 2026 proclamation added certain copper articles to the 50% tier. These tariffs apply to USMCA-compliant goods, so Canadian steel and aluminum are not exempt. The earlier version of this article cited 25% on steel and 10% on aluminum, which are the original 2018 rates.
Canada has responded. Per the same CRS report, Canada imposed 25% tariffs on C$15.6 billion of US steel and aluminum in 2025 and later raised its tariffs on US steel and aluminum to 50%.
The trade is large in both directions. CRS reports Canada supplied $4.5 billion of US steel imports in 2025 (18% of the total) and $7.5 billion of US aluminum imports (43%). A US project buying Canadian aluminum curtain wall or Canadian structural steel pays the tariff, and a Canadian project buying US steel faces Canada's counter-tariff. Our tariff impact guide covers the full rate table.
Softwood lumber
Canadian softwood lumber entering the US faces two layers of duty. A 10% Section 232 tariff on softwood lumber took effect October 14, 2025. On top of that are antidumping and countervailing duties. According to Global Affairs Canada, the US Commerce Department's seventh administrative review final results set the combined "all others" rate at 24.75% (10.64% antidumping plus 14.11% countervailing), down from 35.16% under the amended sixth review. Company-specific rates differ: Canfor 31.11%, Resolute 25.55%, West Fraser 20.02%.
These duties are collected at the US border, so they raise the cost of Canadian lumber for US builders, not for Canadian builders using it at home. Lumber futures settled at $532.50 per thousand board feet on October 16, 2026, per Trading Economics. The earlier "US$480/MBF" figure has been replaced. See our lumber price guide.
Buy America
Federally funded US infrastructure projects carry domestic-content requirements under the Build America, Buy America provisions of the Infrastructure Investment and Jobs Act. Canadian iron, steel and manufactured products generally do not qualify unless a waiver applies. Check the specific funding agency's rules before pricing Canadian material into a federally assisted job.
What this means if you work across the border
For a US contractor looking at Canadian work, the weak loonie makes Canadian projects look cheap in US dollars, but your costs will be incurred in Canadian dollars too. The currency advantage mostly matters when you bring something priced in US dollars, such as equipment or design services, or when you convert profits home.
For a Canadian firm bidding US work, the exchange rate helps on labor and services priced in Canadian dollars, but 50% Section 232 tariffs on steel and aluminum and Buy America rules on federally funded jobs can erase that edge on material-heavy scopes.
In either case:
- Run your estimate at the spot exchange rate and at a stronger and weaker rate. The loonie moved from about US$0.79 to US$0.70 in five years.
- Confirm which tariffs apply to each imported material by HTS code, and whether your contract lets you pass through tariff changes.
- Put sales tax and duties in their own lines so they are not buried in unit costs.
Price both scenarios in our cost estimator, and check your markup with the markup and margin calculator. For a wider international comparison, see US vs UK vs Germany construction costs.
Frequently Asked Questions
Is it cheaper to build in Canada or the US?
At current exchange rates, often Canada. Rider Levett Bucknall's April 2026 ranges put Toronto prime office at C$315–515 per square foot, about US$221–361, against US$355–580 in Chicago and US$260–435 in Dallas. Calgary is lower again. Hospitals are an exception, with similar ranges on both sides. Sales tax, land and development charges are excluded from these figures.
How much does it cost to build high-rise residential in Toronto?
Turner & Townsend's January 2025 Canadian cost guide puts medium-quality high-rise residential in the GTA at C$245–375 per square foot in hard costs, about US$172–263 at C$1.4269 per US dollar. High-quality towers run C$385–680. Those ranges exclude HST, land, fees and development charges.
Why is Vancouver expensive to build in?
In Turner & Townsend's guide, Vancouver's medium-quality high-rise residential range (C$325–395 per square foot) starts well above Toronto's (C$245–375). Land, development charges and soft costs, which are excluded from those ranges, add more on top. Statistics Canada's index shows Vancouver building prices rising slowly in 2026: up 0.5% for residential and 1.3% for non-residential year over year in Q2.
What tariffs apply to Canadian steel, aluminum and lumber?
Section 232 tariffs on steel and aluminum are 50% on full value for most covered goods, including USMCA-compliant Canadian goods, per CRS. Canadian softwood lumber carries a 10% Section 232 tariff plus antidumping and countervailing duties, with an "all others" combined rate of 24.75% under the seventh administrative review final results.
What exchange rate should I use for a cross-border estimate?
Use the current spot rate for a firm number. On October 9, 2026 it was C$1.4269 per US dollar (Federal Reserve H.10 via FRED). Then run a stronger and weaker case, because the rate has moved by about 11% over five years.
Is Canadian construction more unionized than US construction?
Yes. Statistics Canada reports a 29.2% unionization rate for construction employees in 2025, compared with an 11.1% union membership rate for US construction workers reported by the BLS for 2025.
