Canada’s construction sector forecast to grow 6.4% in 2026 driven by multi-family housing, infrastructure

By CaDCR Staff Writer

August 4, 2026

Canada’s engineering and construction sector is on track to expand by 6.4% in 2026, driven by robust demand for multi-family housing and sustained public infrastructure investments, according to the latest industry outlook from consulting firm FMI.

Total construction spending put in place across Canada is projected to reach $457.1 billion  this year, building on a 4.7% gain in 2025, FMI reported in its Third Quarter 2026 North American Engineering and Construction Outlook.

The positive top-line growth comes despite broader economic headwinds. Canada entered a technical recession earlier this year after posting two consecutive quarters of year-over-year gross domestic product declines, though the C.D. Howe Institute’s Business Cycle Council has refrained from declaring a formal recession due to moderate GDP movements and subsequent economic resilience.

Additionally, Statistics Canada data noted a 0.1% decline in resident population during the first quarter of 2026, driven by a 4.4% drop in non-permanent residents.

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