Renovation spending gains ground as residential new-build investment softens (Q2 2026)

Renovation spending accounted for most of the growth in residential construction investment between Q2 2025 and Q2 2026, while investment in new construction was essentially flat to lower overall.

Across single- and multiple-dwelling construction, national renovation investment increased from about $19.52 billion in Q2 2025 to $23.28 billion in Q2 2026, a gain of roughly 19 per cent. New-construction investment moved in the other direction, slipping about 1.5 per cent from $22.49 billion to $22.16 billion.

The split between housing types is more pronounced. Investment in new single-dwelling construction declined 8.6 per cent, from $6.71 billion to $6.13 billion. At the same time, spending on single-dwelling renovations increased 23.4 per cent, reaching $15.20 billion from $12.32 billion a year earlier.

That leaves renovation spending on single dwellings at close to two-and-a-half times the level of new construction. For contractors, suppliers and manufacturers serving the detached-home market, the figures point to substantially more investment flowing into existing housing stock than into new units.

Multiple-dwelling construction continues to show the opposite balance. New-construction investment increased modestly, rising 1.5 per cent to $16.02 billion from $15.78 billion. Renovation spending also grew, up 12.3 per cent to $8.08 billion, but remained well below the amount being invested in new multi-unit construction.

Provincial OverviewThe provincial figures show that the shift toward renovation is uneven.

Québec recorded one of the largest changes, with renovation investment rising from $4.81 billion to $7.79 billion, an increase of roughly 62 per cent. New construction also increased, up about 12 per cent to $4.82 billion.

The combined Manitoba and Saskatchewan market moved sharply as well. New-construction investment increased about 31 per cent to $1.25 billion, while renovation investment climbed approximately 74 per cent to $1.98 billion.

British Columbia was more stable on the new-build side. Investment in new construction rose about 2 per cent to $4.72 billion, while renovations increased 23 per cent to $3.07 billion.

Ontario showed a different mix. New-construction investment fell 11.2 per cent, from $7.56 billion to $6.72 billion, while renovation spending increased 5.9 per cent to $7.98 billion. Renovation investment therefore exceeded new construction in the province during the period.

Alberta and Atlantic Canada were the main exceptions to the broader renovation increase. Alberta new-construction investment fell about 9 per cent to $3.49 billion, while renovation spending declined nearly 50 per cent to $880 million. In Atlantic Canada, new construction dropped about 10 per cent and renovations fell roughly 19 per cent.

Taken together, the figures show a residential construction market in which spending on existing homes is taking a larger share of investment, particularly in the single-dwelling segment. The provincial results, however, remain highly uneven, with strong renovation growth in Québec, Manitoba and Saskatchewan offset by significant declines in Alberta and Atlantic Canada.

Tyler Holt is the Editor of Wood Industry / Le monde du bois magazine. He has a master’s degree in literature and publication, and years of experience in the publishing and digital media industry. His main area of study is the effect of digital technologies on industrial and networked production.