As we navigate the ever-evolving landscape of the construction industry, it’s more important than ever to stay informed about the trends shaping our replacement cost valuations.
In 2023, we observed increased stability in our annual valuation fluctuations, underscoring the influence the economy and housing market have on the construction industry. While the residential sector experienced a dip in growth last year, there’s optimism that a rebound will occur; government investments in the transportation, manufacturing, and energy sectors will drive the industry forward into 2025.
Inside this eBook, you’ll find in-depth insights into the factors driving these changes.
Since 2020, construction costs in Canada have been rapidly changing. During the same period, the rate of inflation in Canada has also experienced an upward trajectory. However, the rate that construction costs are increasing far outpaces that of inflation.
It is for this reason that a professional insurance appraisal is the only reliable solution for determining the optimal coverage amount for your property insurance.
Following a tumultuous year for Canadian construction costs, 2023 will provide some reprieve for property owners with cost increases beginning to flatten. Having said that, it’s important to keep expectations in check: costs won’t be decreasing, but increases will be less severe than what we witnessed in 2022.
Download our newest publication to learn about the biggest impacts to construction costs in Canada and how they will impact appraisal values this year.
All property owners should obtain regular insurance appraisals in order to protect their biggest asset. An insurance appraisal ensures your property, whether that is your home or your business, is insured to the full replacement cost value in the event of a total loss.
Without one, owners could be left at significant risk of underinsurance or liable for losses suffered by others.
Now more than a year into the global COVID-19 pandemic, we have enough data to estimate reconstruction cost changes for 2021 and beyond.
The results are not what you expect during a global pandemic: Normac’s research shows that all regions of Canada can expect residential construction cost increases that outpace those of recent years or standard inflation.