��������

OTTAWA — The Royal Institution of Chartered Surveyors’ (RICS) latest construction monitor report for Canada shows the construction sector’s sentiment edged higher in the fourth quarter of 2025, but activity remains “subdued” outside of infrastructure.

The ��������ion Sentiment Index posted a modest improvement compared with the previous quarter, with the uplift most evident among larger firms, where sentiment moved from slightly negative in Q3 to firmly positive territory in Q4.

However, feedback from respondents highlights ongoing caution.

“Infrastructure workloads remain resilient and are the strongest-performing segment of the market,” reads a release. “Activity is being supported by energy and digital projects, with the most robust regional readings reported in Atlantic Canada and Ontario.”

In contrast, private residential workloads declined for the fourth consecutive quarter, with British Columbia reporting particularly weak conditions. Private non-residential activity showed signs of stabilization but remains mixed across provinces, the institution notes.

“Profit margins remain under pressure, marking the 10th successive quarter in negative territory,” it reads. “However, the latest net balance reading improved compared with Q3, suggesting the pace of deterioration is easing. Among larger firms, margins moved back into positive territory in Q4, signalling potential stabilization in that cohort.”

Recruitment challenges and payment delays are still being widely reported.

Respondents continue to report a difficult credit environment despite interest rate cuts earlier in 2025. Financial constraints were cited by 57 per cent of respondents as a key factor limiting activity.

“Twelve-month expectations point to little prospect of a near-term rebound in residential construction, despite ongoing housing undersupply. High build costs, subdued investor demand and slowing population growth are weighing on new project initiation,” RICS states.

“Commercial construction expectations are somewhat more positive, but infrastructure once again stands out as the segment with the strongest projected growth over the coming year. Larger firms remain the most optimistic regarding future workloads and margin recovery. “

Skills shortages continue to present a major challenge for the sector. Nearly six in 10 respondents cited labour shortages as a constraint on activity, with shortages in skilled trades identified as particularly acute. Concerns also remain elevated regarding the availability of qualified quantity surveyors. 

Survey participants across multiple provinces referenced uncertainty surrounding U.S.\Canada trade relations, tariffs, material price volatility and geopolitical instability as factors dampening confidence. In British Columbia and Ontario, respondents also highlighted rising development charges, regulatory pressures and weak residential demand as significant headwinds, the release adds.

“The Q4 2025 Canada ��������ion Monitor reflects an industry at a crossroads. The fundamentals for long-term growth remain strong: Canada’s infrastructure needs are significant, housing demand is not going away, and the talent and expertise within the Canadian quantity surveyor profession is world-class,” said Sheila Lennon, chief executive officer of Canadian Institute of Quantity Surveyors, in a statement.

“What is required is stability. Stability in trade policy, stability in the regulatory environment and stability in access to financing.”