Finance

Multi-family sector adds $24-bil to Canada’s GDP

Tuesday, January 13, 2015

According to a report from the Real Property Association of Canada (REALpac), the Canadian multi-family sector contributes approximately $24-billion to Canada’s economy on an annual basis. This number includes revenue generated through construction, investments, ongoing maintenance and operations, and job creation.

“Canada is fortunate to have an efficient and responsible multi-family real estate industry,” says Thomas Schwartz, President and CEO of CAPREIT. “Landlords, large and small, continue to invest in rental housing, which is an integral part of the Canadian housing spectrum. This provides a wide range of housing options for over 4 million tenants across the country.”

In 2013, total capital investment in the multi-family real estate sector, including new building construction and renovations of existing buildings, reached $10.1-billion. Multi-family rental operations and maintenance contributed $1.3-billion to the economic landscape while brokerage fees from sales and leases generated $211-million.

The report, titled “Contribution of the Multi-Family Rental Real Estate Sector to the Canadian Economy,” was produced by independent commercial real estate consultants and advisors Altus Group. Report data was derived from several sources, including Statistics Canada and Altus Group’s in-house databases. Information from secondary sources, such as the Canada Mortgage and Housing Corporation (CMHC), the Canadian Real Estate Association (CREA), Canada Revenue Agency, and provincial finance ministries, was also used for evaluation.

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