Under construction: The steady growth of urbanization and the economy will keep the industry growing

The Apartment and Condominium Construction industry in Canada has thrived over the five years to 2018, having been marked by the speculative forces that affected its performance in the past and will likely create volatility in the future. The value of residential construction is the major indicator for investors in the industry. Its rise has spurred investment and lifted the industry after sluggish performance in 2013 and 2014. Early in the five-year period, new housing stock emerged as one of the greatest needs in many provinces. A growing urban population and falling unemployment levels have prompted growing demand for multifamily construction projects by young adults and retiring baby boomers looking to downsize...read more.

Industry Statistics & Market Size
Annual Growth 13-18
Forecast Growth 18-23
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • Operators have demonstrated that they will resort to subcontractors when contending with squeezing margins
  • Short-term interest rates were kept low to encourage banks to increase lending
  • Demand from young professionals and retiring baby boomers is not expected to decrease
  • Industry Report - Industry Key Buyers Chapter

    The Apartment and Condominium Construction industry in Canada is characterized by its many small- to medium-size contractors that operate in relatively narrow regional markets. The largest players collectively generate less than 5.0% of industry revenue, but many participants operate on a national basis and within other industries, including single-family housing construction, nonresidential building and property development. Nonemployers make up over 60.0% of the industry and enterprises with less than five employees constitute over 85.0% of the whole industry. However, companies have sought opportunities to expand their operations to achieve greater economies of scope through mergers or acquisitions, which could potentially concentrate the market in the future...purchase to read more.

    Additional Insights for the Apartment & Condominium Construction Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Apartment & Condominium Construction Industry are

  • Having a high prior success rate (including completed prior contracts)
  • Access to multiskilled and flexible workforce
  • Ability to expand and curtail operations rapidly in line with market demand
  • IBISWorld analysts also discuss how external factors such as Value of residential construction and National unemployment rate in the Apartment & Condominium Construction industry impact industry performance..

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    What's in this report

    What is the Apartment & Condominium Construction Industry?

    This industry constructs new multifamily residential units, including high-rise apartments, townhouses, condominiums and medium- to high-density units (i.e. units not separated by a ground-to-roof wall). All of the complexes may be constructed for sale as condominiums or cooperatives, or for rent as apartments. This industry does not include speculative builders or contractors that build on their own account for sale.

    Industry Products
  • Apartments and condominiums
  • Rows
  • Doubles
  • Industry Activities
  • Constructing multifamily residential housing units
  • Constructing apartment complexes (high-rise and low-rise buildings)
  • Constructing condominiums (attached and detached units)
  • Constructing townhouses and duplexes
  • Constructing multiunit special-needs complexes (e.g. low-income, senior care and campus housing)
  • Construction management of multifamily building projects (home builders and general contractors)
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Value of residential construction
  • National unemployment rate
  • GDP of Canada
  • Urban population

  • Current Performance
  • Demand fluctuations
  • Subcontracting to reduce labour costs
  • Chart: Revenue Growth

  • Industry Outlook
  • Slower but steady
  • An industry divided
  • Wages and profit
  • Table: Apartment & Condominium Construction Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Apartment & Condominium Construction Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Real Estate Investment Trusts in Canada
  • Apartment Rental in Canada
  • Educational Services In Canada
  • Healthcare and Social Assistance In Canada

  • Key Selling Industries
  • Architects in Canada
  • Construction & Forestry Equipment Wholesaling in Canada
  • Construction In Canada
  • Lumber Wholesaling in Canada
  • Ready-Mix Concrete Manufacturing in Canada
  • Roofing, Siding & Insulation Wholesaling in Canada
  • Tool & Hardware Wholesaling in Canada

  • Products & Services
  • Apartments and condominiums
  • Rows
  • Doubles
  • Chart: Apartment & Condominium Construction Industry Products and Services Segmentation

  • Demand Determinants
  • Demand for rental units
  • Residential property investment

  • Major Markets
  • Private sector clients: property developers
  • Private sector clients: REITs
  • Federally funded projects
  • Chart: Major Market Segmentation for the Apartment & Condominium Construction Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Apartment & Condominium Construction

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Apartment & Condominium Construction Industry

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    Capital Intensity
  • Chart: Level of Capital Intensity for the Apartment & Condominium Construction Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Apartment & Condominium Construction Industry
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • Rental Vacancy Rate (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
  • An enterprise that prepares a real estate site for residential or commercial use and raises capital, gains zoning approvals and hires contractors to design, construct and develop property.
  • Housing Starts
  • The number of new homes under construction during a specified period of time and a key economic indicator of the health of the housing market.
  • Real Estate Investment Trust (Reit)
  • A legal entity that uses pooled investor capital to purchase and manage income property or mortgage loans. To qualify as an REIT, the entity must distribute at least 90.0% of taxable income.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Apartment & Condominium Construction market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Apartment & Condominium Construction:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Apartment & Condominium Construction market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Apartment & Condominium Construction, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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