Renovation spending drove most of the growth in residential construction investment in the second quarter of 2026, while new construction was flat or down year-over-year.
Across single- and multi-dwelling construction, national renovation spending increased to $23.28 billion in Q2 2026, from $19.52 billion in Q2 2025, a gain of 19 per cent. New construction investment moved in the other direction, slipping 1.5 per cent to $22.16 billion from $22.49 billion.
The split between housing types is more pronounced. Investment in new single-dwelling construction declined 8.6 per cent to $613 billion from $6.71 billion. At the same time, spending on single-dwelling renovations increased 23.4 per cent, reaching $15.2 billion, up 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 businesses serving the detached-home market, the figures point to substantially more investment flowing into existing housing stock than into new units.
Multi-dwelling construction continued to show the opposite balance. Investment in new construction 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 spending on new multi-unit construction.
The provincial figures show that the shift toward renovation is far from uniform.
Quebec recorded one of the largest year-over-year changes, with renovation investment rising to $7.79 billion from $4.81 billion, an increase of 62 per cent. New construction has increased, up 12 per cent to $4.82 billion.
The combined Manitoba and Saskatchewan market also moved sharply. New construction investment increased 31 per cent to $1.25 billion, while renovation spending climbed 74 per cent to $1.98 billion.
British Columbia was more stable on the new-build side. Investment in new construction rose two per cent to $4.72 billion, while renovation spending increased 23 per cent to $3.07 billion.
Ontario showed a different mix. New construction investment fell 11.2 per cent to $6.72 billion from $7.56 billion, while renovation spending increased 5.9 per cent to $7.98 billion.
Alberta and Atlantic Canada were the main exceptions to the broader increase in renovation spending. Alberta’s new construction investment fell about nine per cent to $3.49 billion, while renovation spending declined nearly 50 per cent to $880 million. In Atlantic Canada, new construction investment dropped 10 per cent, while renovation spending fell 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 picture, however, remains highly uneven, with strong renovation growth in Quebec, Manitoba and Saskatchewan offset by significant declines in Alberta and Atlantic Canada.
Tyler Holt is the editor of Wood Industry magazine, which focuses on the business side of woodworking.