Price Trends in the Construction Sector – An Overview as of June 20, 2025

After several turbulent years, the construction market in Quebec and Canada is entering a stabilization phase. Material prices, which reached historic highs between 2021 and 2023, have been showing signs of normalization since the beginning of 2025, although some categories remain high. Here is an overview of the main trends and their impact on residential and commercial construction sites.

An Expected... But Selective Stabilization

According to the latest data from Statistics Canada and the AQMAT (Quebec Hardware and Building Materials Association), the prices of several materials have decreased between January and June 2025. However, these decreases are neither widespread nor uniform.

Lumber, steel, asphalt, and copper pipes are down, while vinyl siding, finishing materials, and certain heat pumps continue their moderate increase.

“We are witnessing a market reconfiguration. Supply chains are more fluid, inventories are being replenished, and demand in the residential sector is slowing slightly, which is putting downward pressure on some prices,” notes an industry analyst at ConstructoAI.

Overview of Variations in June 2025

🔍 Tracking Table – Price and Demand (June 2025, Quebec/Canada)

Category	Product	Price Change (12 months)	Demand Change	Comment
Lumber	2x4s, plywood	–10 to –15 %	↘ Moderate	Return to pre-COVID levels thanks to abundant supply
Steel	Beams, rebar	–6 to –8 %	↘ Low	Fewer residential housing starts
Exterior Siding	Vinyl, fiber cement	+5 to +7 %	↗ Slight	Stable demand for residential projects
Insulation	Mineral wool, polyurethane	+2 to +3 %	↗ Strong	Driven by green subsidies (Rénoclimat, etc.)
Drywall	½", ⅝" panels	+2 %	↔ Stable	Widespread use, low elasticity
Paint	Interior/Exterior	+3 to +5 %	↗ Slow	Increase linked to light renovations
Mechanical Equipment	Ductless heat pumps	+8 to +10 %	↗ Strong	Strong demand driven by incentives (eco-energy)
Piping	Copper	–6 %	↘ Low	Decrease linked to global demand
Asphalt	Paving	–5 to –7 %	↘ Moderate	Fewer municipal projects in 2025

Factors Influencing Prices

1. Slowdown in New Residential Construction

The slowdown in residential construction in Quebec, which began in 2023, is continuing in 2025. According to the CMHC, housing starts decreased by 12 % in the first quarter compared to last year.

2. Stabilized Supply Chains

Supply lead times have returned to normal, especially for lumber and steel.

3. Contained General Inflation

Inflation in Canada stood at 2.2 % in May 2025 (StatCan), which is limiting cost increases.

4. Sustained Demand for Green Renovations

Programs like Rénoclimat and Greener Homes are maintaining strong demand for energy-efficient materials.

What Strategies Should Professionals Adopt?

• Anticipate localized increases: Regularly monitor prices to buy at the right time.
• Build strategic inventories: Take advantage of price drops for lumber and steel.
• Adjust estimates: Incorporate current trends into quotes using tools like ConstructoAI.

Conclusion

The Quebec and Canadian construction market is entering a mature phase. By staying informed and adjusting their procurement practices, professionals can improve their efficiency and competitiveness.

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Sources

• Statistics Canada – CPI and Industrial Product Price Indexes (May-June 2025)
• CMHC – Housing Starts Data (Q1 2025)
• AQMAT – 2025 Sector Bulletin
• ConstructoAI – Internal Price Analysis by Region
• Quebec's Ministry of Energy and Natural Resources – Rénoclimat Programs
• Environment and Climate Change Canada – Energy Efficiency Trends (2025)