Construction costs in Canada have increased 51% since the start of the pandemic due to shortages of construction materials and workers. The high costs of materials like lumber, concrete, and steel have contributed to soaring prices. Development fees set by municipalities have also increased significantly alongside higher material costs and population growth expectations. Efforts to boost construction of new homes could further exacerbate high costs by increasing demand for materials, and expanding production of materials like cement faces environmental challenges. Governments will need to balance development fees with the goal of improving housing affordability.