Home sweet home: Sluggish demand has prompted industry operators to halt employment

The Homebuilders industry in Canada constructs homes in which units are separated by walls and typically have no units above or below them. Over the five years to 2019, the industry suffered from weak economic growth brought on by the rapid decrease in commodity prices, a staple of the Canadian economy. Slack in the overall economy and the housing sector has increased financial strain on smaller operators and has discouraged new entrants from joining the market. High household debt levels and new regulations are anticipated to initially hurt consumer spending on new housing over the five years to 2024. With shaken consumer confidence, Canadians are expected to focus on paying down accumulated debt rather than sign new mortgages...read more.

Industry Statistics & Market Size
Annual Growth 14-19
Forecast Growth 19-24
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • Fluctuations in housing starts will result in the volatility of industry performance
  • Compounding drops in industry revenue has discouraged operators from entering the market
  • Concerns of a property bubble in Canada’s cities will remain a prominent issue
  • Industry Report - Industry Locations Chapter

    Establishments in the Homebuilders industry in Canada closely follow the population distribution across Canada. Highly populated areas are more likely to require a greater number of homebuilders as more individuals demand services. Moreover, wealthier areas are more likely to have a greater number of homebuilders as more new houses are built and prices are typically higher, which results in greater profitability.OntarioOntario holds the largest number of homebuilders, accounting for an estimated 36.8% of total industry establishments in 2019. The province composes of 38.7% of Canada’s population, and thus provides ample demand for homebuilders. Add...purchase to read more.

    Additional Insights for the Homebuilders Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Homebuilders 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 Housing starts and Value of residential construction in the Homebuilders industry impact industry performance..

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    What's in this report

    What is the Homebuilders Industry?

    This industry primarily constructs single-family homes in which units are separated by ground-to-roof walls and have no units above or below. Industry operators include general contractors, design-build companies and single-family construction management companies acting as general contractors and builders.

    Industry Products
  • Single unit house construction
  • Double house construction
  • Row house construction
  • Industry Activities
  • Single-family home building and general contracting
  • Managing single-family housing construction
  • Low-income single-family housing construction
  • Additions, alterations, reconstruction, maintenance and repair work of single-family homes
  • Managing residential remodelling construction
  • Handyman construction for residential buildings
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Housing starts
  • Value of residential construction
  • Per capita disposable income
  • Overnight rate

  • Current Performance
  • Government assistance
  • Thinning market
  • Regulatory worries
  • Chart: Revenue Growth

  • Industry Outlook
  • Leveraged households hurt demand
  • An unsure future
  • Table: Homebuilders Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Homebuilders Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Finance and Insurance In Canada
  • Apartment Rental in Canada
  • Consumers in Canada

  • Key Selling Industries
  • Cement Manufacturing in Canada
  • Construction In Canada
  • Lumber Wholesaling in Canada
  • Ready-Mix Concrete Manufacturing in Canada
  • Roofing, Siding & Insulation Wholesaling in Canada
  • Sawmills & Wood Production in Canada

  • Products & Services
  • Single unit house construction
  • Row house construction
  • Double house construction
  • Chart: Homebuilders Industry Products and Services Segmentation

  • Demand Determinants
  • Short-term influences
  • Long-term influences

  • Major Markets
  • Individuals aged 55 to 64
  • Individuals aged 45 to 54
  • Individuals aged 35 to 44
  • Individuals aged 65 to 74
  • Individuals aged 25 to 34
  • Individuals aged 75 to 84
  • Individuals aged 85 and older
  • Individuals aged 18 to 24
  • Chart: Major Market Segmentation for the Homebuilders 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 Homebuilders

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Homebuilders 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 Homebuilders 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 Homebuilders Industry
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)
  • Wages (2010-2024)
  • Purchases (2010-2024)
  • Profit (2010-2024)
  • Depreciation (2010-2024)
  • Marketing (2010-2024)
  • Rent (2010-2024)
  • Utilities (2010-2024)
  • Other (2010-2024)
  • Housing Starts (2010-2024)

  • 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, raising capital, securing zoning approvals and hiring contractors to design, construct and develop property.
  • General Contractor
  • An individual or company that manages the construction of a structure for a property owner or developer. A general contractor may retain its own labour force or use subcontractors for projects.
  • 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.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Homebuilders 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 Homebuilders:
    • 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 Homebuilders 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 Homebuilders, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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