Apartment Rental in Canada - Market Research Report (2014-2029)
New York, United States
Last Updated: September 2024
NAICS 53111CARevenue
$61.2bn
Past 5-Year Growth
Profit
$XX.Xbn
Employees
32,014
Businesses
380k
Wages
$X.Xbn
Apartment Rental in Canada industry analysis
Revenue for Canadian apartment lessors has grown through the end of 2024. Apartment lessors collect rental income from rental properties, so market forces largely determine their rates. The supply of apartment rentals has grown slower than demand, which has elevated rental rates for lessors' benefit. Favourable economic conditions and demographic trends during most of the period have driven growth in demand. In 2020, the spread of COVID-19 lessened demand for apartment rentals, but the nature of apartment leases prevented a dip in revenue until 2021. Revenue has grown since 2022 as higher prices and strong demand have fuelled a robust rental market. Revenue has grown at a CAGR of 0.7% over the past five years and will reach $61.2 billion by the end of 2024. This includes a 2.1% swell in 2024 alone.
Trends and Insights
- Despite eye-watering costs, major Canadian cities are still the hot spots for rental growth. Urbanization and immigration are driving apartment demand in these areas.
- Middle-aged consumers are more likely to own a home. With more time to save and greater access to opportunities, 35- to 64-year-olds lean towards the permanency and dedication of homeownership.
- British Columbia's rental market is booming despite hurdles. With high demand and low vacancies in Vancouver, real estate businesses are willing to tackle steep land prices and intricate regulations for a slice of the pie.
- Here’s the hard truth—rental apartments can be pretty cookie-cutter. To carve out a niche and stand out, lessors must focus on what makes a property unique, like top-notch design, modern amenities and an easy commute.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has grown at a CAGR of 0.7 % over the past five years, to reach an estimated $61.2bn in 2024.
Trends and Insights
Demand outstrips the supply of apartments
- The largest revenue share originates in urban centres, where rental apartments are prevalent because of density and demographic landscape.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
The supply of apartments will remain tight
- Stricter mortgage standards and higher interest rates will hinder condominium development, reducing the available supply of rentable condominiums. The supply of rental dwellings will begin to lean away from condominiums toward multifamily apartment complexes.
Biggest companies in the Apartment Rental in Canada
| Company | Market Share (%)
2024 | Revenue ($short_0)
2024 | Profit ($short_0)
2024 | Profit Margin (%)
2024 |
|---|
There are no companies that hold a large enough market share in the Apartment Rental in Canada industry for IBISWorld to include in this product.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Studio apartments, One-bedroom apartments and Two-bedroom apartments. Studio apartments is the largest segment of the Apartment Rental in Canada.
Trends and Insights
Studio apartments are less common, limiting revenue
- Studio units combine the bedroom, kitchen and living room into a single room and are categorized as containing no bedrooms. These units are typically more affordable for a single renter than owning a one-bedroom apartment.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- Real Estate Sales & Brokerage in Canada
- Hotels & Motels in Canada
Complementors
- Storage & Warehouse Leasing in Canada
- Real Estate Sales & Brokerage in Canada
- Property Management in Canada
International industries
- Global Commercial Real Estate
- Apartment Rental in the US
- Residential Property Operators in Australia
- Real estate activities with own or leased property
- Real estate activities with own or leased property
Table of Contents
About this industry
Industry definition
Operators in the Apartment Rental industry in Canada act as lessors of buildings that are used as residences or dwellings. Industry participants are owner-lessors of residential buildings and establishments that rent real estate and then act as lessors by subleasing it to others. In addition to apartment rentals, the industry also includes attached and detached houses and row houses.
What's included in this industry?
Two-bedroom apartmentsOne-bedroom apartmentsApartments with three or more bedroomsStudio apartmentsCompanies
Purchase this report to view all major companies in this industry.
Related Terms
DWELLINGVACANCY RATEREAL ESTATE INVESTMENT TRUST (REIT)Industry Code
NAICS 53111 - Apartment Rental in Canada
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
Despite eye-watering costs, major Canadian cities are still the hot spots for rental growth. Urbanization and immigration are driving apartment demand in these areas.
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2014-2023) and forecast (2024-2029)
- Employees, including historical (2014-2023) and forecast (2024-2029)
- Businesses, including historical (2014-2023) and forecast (2024-2029)
- Profit, including historical (2014-2024)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Middle-aged consumers are more likely to own a home. With more time to save and greater access to opportunities, 35- to 64-year-olds lean towards the permanency and dedicatio...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2024
- Product innovation level
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
British Columbia's rental market is booming despite hurdles. With high demand and low vacancies in Vancouver, real estate businesses are willing to tackle steep land prices a...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each province
- Share of population compared to establishments in each region in 2024
Tables
- Number and share of establishments in each province in 2024
- Number and share of revenue each province accounts for in 2024
- Number and share of wages each province accounts for in 2024
- Number and share of employees in each province in 2024
Detailed analysis
- Geographic spread of the industry across North America, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
Here’s the hard truth—rental apartments can be pretty cookie-cutter. To carve out a niche and stand out, lessors must focus on what makes a property unique, like top-notch de...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2019-2024
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
The largest lessors continue to acquire new properties. These owners of expansive portfolios of properties will be able to endure poor economic conditions and capitalize on e...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2020 through 2024
- Major companies in the industry, including market share, revenue, profit and profit margin in 2024
Detailed analysis
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Higher per capita disposable income means folks have more cash to spend on living expenses. A swell in this income can boost the rental market, as people are more ready to fo...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2014-2029)
- Assistance historical data and forecast (2014-2029)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Running a successful apartment complex isn't just about collecting rent; it's also about managing administrative costs. This includes ensuring contracts are legally watertigh...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Investment vs. share of economy
Data tables
- Liquidity Ratios (2017-2022)
- Coverage Ratios (2017-2022)
- Leverage Ratios (2017-2022)
- Operating Ratios (2017-2022)
- Assets (2017-2022)
- Liabilities (2017-2022)
- Cash Flow & Debt Service Ratios (2014-2029)
- Revenue per Employee (2014-2029)
- Revenue per Enterprise (2014-2029)
- Employees per Establishment (2014-2029)
- Employees per Enterprise (2014-2029)
- Average Wage (2014-2029)
- Wages/Revenue (2014-2029)
- Establishments per Enterprise (2014-2029)
- IVA/Revenue (2014-2029)
- Imports/Demand (2014-2029)
- Exports/Revenue (2014-2029)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2014-2029)
- IVA (2014-2029)
- Establishments (2014-2029)
- Enterprises (2014-2029)
- Employment (2014-2029)
- Exports (2014-2029)
- Imports (2014-2029)
- Wages (2014-2029)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in Canada include:
- Statistics Canada
- Industry Canada
- Canadian Business Patterns
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Apartment Rental industry in Canada in 2024?
The market size of the Apartment Rental industry in Canada is $61.2bn in 2024.
How many businesses are there in the Apartment Rental in Canada industry in 2024?
There are 380k businesses in the Apartment Rental industry in Canada, which has grown at a CAGR of 5.1 % between 2019 and 2024.
Has the Apartment Rental industry in Canada grown or declined over the past 5 years?
The market size of the Apartment Rental industry in Canada has been growing at a CAGR of 0.7 % between 2019 and 2024.
What is the forecast growth of the Apartment Rental industry in Canada over the next 5 years?
Over the next five years, the Apartment Rental industry in Canada is expected to grow.
What does the Apartment Rental in Canada include?
Two-bedroom apartments and One-bedroom apartments are part of the Apartment Rental industry.
How competitive is the Apartment Rental industry in Canada?
The level of competition is high and steady in the Apartment Rental industry in Canada.
