7 construction trends you need to track in 2026

A new prime minister, trade war with our closest ally, the launch of huge government programs, game-changing court cases, dramatic economic shifts — 2025 was a big year for the industrial sector. But with it rapidly disappearing in the rearview mirror, we rounded up some of the major trends to keep an eye on in 2026.

1. Tariff turmoil with the U.S.

We are far from burying the hatchet with our neighbours to the south. The Canada–U.S. tariff war exploded up in 2025. The U.S. imposed broad tariffs on some Canadian exports under emergency measures that President Donald Trump claimed were tied to border/fentanyl enforcement (with many USMCA-compliant goods effectively carved out), while also keeping pressure on key industrial supply chains through sector-focused tariffs. Canada responded with retaliatory surtaxes on U.S. imports to gain leverage and protect domestic industry. Ottawa later de-escalated by removing most counter-tariffs effective Sept. 1, 2025, but kept tariffs on U.S. steel, aluminum and automobiles because the underlying U.S. measures in those areas were still in place. As of early 2026, it’s cooled but unresolved: major tariffs and uncertainty remain for cross-border trade and project inputs, and a wider settlement is increasingly being pushed toward the formal 2026 USMCA/CUSMA review rather than a quick pre-review deal.

2. Private property thrown into question

Is private property ownership on its way out? The land-rights debate surged in 2025 after a B.C. Supreme Court decision in the Cowichan (Quw’utsun) Tl’uqtinus/Richmond case found Aboriginal title could still exist in an area long treated as settled under B.C.’s land-title system—triggering alarm among property owners, lenders and developers about what “certainty of title” really means. Premier David Eby warned the ruling’s ripple effects were undermining confidence, saying “the uncertainty this case creates is toxic to the work we have to do with First Nations and businesses,” while Cowichan leadership pushed back on claims it threatened everyday homeowners, stressing “The ruling does not erase private property.” Other high-profile disputes elsewhere in Canada are brewing over historic treaty/reserve lands, making the issue a flashpoint. Proponents see long-overdue constitutional reconciliation, while critics fear courts are re-writing the rules midstream for private property and project approvals.

3. Needle moving on industrialized constrution

2026 was historic for the modular and industrialized construction movement and it appears that things are only getting started. Canada embarked on a new strategy to tackle one its greatest modern challenges, affordable housing, with the federal government looking to industrialize the construction process as a way to bring building costs down. Last fall, Build Canada Homes began searching for partners to build 540 modular homes in Toronto’s Downsview neighbourhood as part of a larger plan to add 4,000 factory-built homes on six federally owned sites, with potential to add more later. We also saw the release of the Housing Design Catalogue which offers over 50 regionally tailored, standardized home designs, another signal from officials that they are betting on industrialized construction. Some believe the approach is going to push the sector towards more standardized, modular, and productized design, where efficiency, repeatability, and speed take priority.

4. Condo markets collapse

Canada’s condo-development engine has sharply slowed as pre-construction sales dried up under the combined weight of higher interest rates, affordability shock, investor pullback and tougher financing requirements—many projects can’t hit the presale thresholds lenders need to release construction loans, so more launches are being delayed, paused or cancelled, especially in major markets like Toronto and Vancouver. Last year we saw many developers liquidating assets and urging Ottawa, as well as provincial leaders, to relax rules and allow more offshore investment into the market. With the for-sale condo model no longer reliably fundable through presales, a growing number of developers have pivoted toward purpose-built rental, where cash flow is steadier and the capital stack can be easier to structure (including in some cases converting planned condo projects into rentals), accelerating the shift toward rental construction even as the condo pipeline weakens. Watching more rental units hit the market and what other innovative strategies developers will use to stay afloat is sure to be interesting in the coming months.

5. Billions at stake in data centre projects

Canada’s data-centre pipeline picked up real momentum in 2025 as AI and cloud demand moved from headlines to hard procurement: more large-scale campuses advanced through site selection, power applications and early construction planning, and big capacity blocks started getting pre-leased—especially around major hubs like the GTA—signalling that developers and tenants are increasingly willing to commit. Provinces also began drawing clearer lines on what growth will look like: Alberta has been loudly positioning itself as a North American data-centre and AI hub, but grid operators are tightening connection rules and load limits to protect reliability, meaning only the best-sited, best-powered projects will advance. Looking into 2026, the opportunity remains huge, but the winners will be defined by access to power, speed of interconnection, community and economic-benefit packages, and the ability to prove projects can deliver jobs and tax base without destabilizing the grid.

6. Megaproject completions free up capacity

This year’s project completions are releasing a substantial wave of construction labour back into the market. Major wrap-ups include urban megaprojects such as Toronto’s Eglinton Crosstown LRT, Metro Vancouver’s Pattullo Bridge replacement, and the Gordie Howe International Bridge, alongside B.C.’s Site C Clean Energy Project and the first phase of LNG Canada in Kitimat—two of the largest builds in Canadian history. Site C reached full operation in August 2025 after peaking at more than 6,000 workers, while LNG Canada’s first phase and second train were handed over in 2025 following years of employing thousands of camp-based trades. As these projects shift from peak construction to lean operations, they are collectively freeing up a large pool of heavy civil, industrial, and transit-experienced workers.

7. Ottawa intervenes to boost construction

Over the past year, the federal government has moved from a mostly arm’s‑length role in housing to a far more interventionist stance, centred on the creation of Build Canada Homes, a new national agency mandated to build affordable homes directly, leverage federal land, and de‑risk large-scale projects for private and non‑profit builders through flexible financing and incentives. Ottawa has paired this with substantial new capital—an initial $13 billion for Build Canada Homes plus dedicated funds for deeply affordable, non‑market, Indigenous, and supportive housing—alongside tools like a Rental Protection Fund to help community providers acquire at‑risk rental buildings and keep them affordable. On the market side, the federal government has also started to use tax and regulatory levers more aggressively, including proposed GST relief for first‑time buyers on new homes and measures to lower construction and approval costs. Will Ottawa truly commit to this approach and can it have an impact on builders? We will start to see in the coming months.​