StatsCan: Critical water, road upgrades could cost $356B

As Canada grapples with its highest population growth rate since 1957, the demand for upgraded infrastructure has become increasingly critical.

Key Takeaways:

  • Statistics Canada estimates that replacing road and water systems in “poor” or “very poor” condition will require $356.7 billion, highlighting the urgent need for infrastructure investment.
  • Local and regional governments are responsible for 72% of Canada’s $2.6 trillion transportation and water infrastructure, owning the majority of roads (64%) and public transit assets (76%).
  • With Canada experiencing its highest population growth rate since 1957, there has been a marked increase in the installation of water pipes and road construction, yet a significant portion of public transit and active transportation assets remain in unknown condition.

The Whole Story:

Statistics Canada estimates $356.7 billion will be required to replace road and water systems classified as being in “poor” or “very poor” condition, underscoring the urgent need for infrastructure investment across the country.

Their latest data shows that the total replacement value of Canada’s transportation and water infrastructure reached $2.6 trillion at the end of 2022, with local and regional government organizations responsible for nearly three-quarters (72%) of this critical framework.

The survey reveals that local and regional governments own 64% of the replacement value of roads, 76% of public transit assets, and 82% of active transportation infrastructure. However, responsibility for bridges and tunnels predominantly rests with provincial and territorial governments, which hold 69% of these structures.

Public transit is undergoing a significant transformation, with municipalities of 200,000 residents or more owning 58% of public transit assets by current replacement value, while provincial governments account for 24%. Other local authorities hold the remaining 18%. From 2020 to 2022, the number of electric buses in public transit rose by 31%, alongside notable increases in biodiesel (+64%), natural gas (+30%), and hybrid buses (+15%). In contrast, the use of diesel buses declined by 16%, reflecting a shift towards greener alternatives.

Statistics Canada noted that as Canada grapples with its highest population growth rate since 1957, the demand for upgraded infrastructure has become increasingly critical. Between July 2022 and June 2023, there was a notable surge in the installation of drinking water, wastewater, and stormwater pipes, with 29,100 km added—an average of 9,700 km per year. This pace surpasses the previous decades, where annual installations were significantly lower.

The pace of road construction has similarly increased, with an average of 12,396 two-lane equivalent kilometres completed annually from 2020 to 2022—exceeding previous periods by more than 25%. Rural municipalities own 57% of road lengths, while urban municipalities control the majority (62%) of active transportation infrastructure, including vital bikeways. As of the end of 2022, Canada had 28,122 km of bikeways, with nearly a quarter (23%) completed between 2020 and 2022. However, one-third of Canadian neighborhoods still lack adequate cycling infrastructure.

A significant concern emerges regarding the condition of public transit and active transportation assets. Approximately 17% of public transit assets and 42% of active transportation infrastructure are classified as being in unknown physical condition, with an estimated total replacement value of $45.7 billion. When combined with roads, bridges, and tunnels, this figure climbs to $141.7 billion. The road transportation infrastructure, encompassing roads, bridges, tunnels, and cycling paths, is valued at $1.63 trillion, with $250.2 billion (15%) estimated to be in poor or very poor condition.

Water infrastructure also faces challenges, with its current replacement value estimated at $963.0 billion. Over one-tenth (11%) of this infrastructure is rated as being in poor or very poor condition, amounting to $106.5 billion.

Share

Get smarter on the 🇨🇦 construction industry in just 5 minutes

Sign up for the free weekly newsletter for news, trends and insights in the Canadian construction industry.

25 Innovators in Canadian Construction

Get 25% off tickets to the 25 Innovators Event

Join us for the second annual 25 Innovators in Construction Awards, where we honour the trailblazing companies shaping the future of the construction industry. Use the promo code INNOVATOR2025 to get 25% off tickets using the link below.

Get tickets

Topics

PeopleProjectsTechnologySustainabilityRecruitmentEconomy

Newsletter

Get the 5-minute, weekly newsletter about the Canadian construction industry.

© SiteNews 2025. All rights reserved. SiteNews is an independently-operated news website. Views expressed are that of the editor's and are based on publicly available information unless otherwise noted through sponsored content.