Home sweet home: Favourable economic conditions will foster industry revenue growth

The Apartment Rental industry in Canada has grown steadily over the five years to 2018. Industry operators collect rent income from properties they lease, where the rates they charge are largely determined by market forces. The supply of apartment rentals has grown at a slower pace than demand, which has elevated rental rates to the benefit of the industry. Favourable economic conditions and demographic trends have driven this growth in demand. The urban population in Canada has grown marginally over the past five years, which has increased demand for housing. Favourable macroeconomic conditions are expected to fuel demand for apartment rentals over the next five years...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

  • An environment of rising real estate values has fuelled revenue growth
  • Low mortgage rates have aided demand for homeownership
  • A favourable macroeconomic environment will maintain growth in rental rates
  • Industry Report - Industry Key Buyers Chapter

    The Apartment Rental industry in Canada is extremely fragmented, with nonemployer establishments accounting for an estimated 97.1% of the industry's total establishments. Most rental units are owned by small companies or individuals who rent out residential property they own. In fact, in some cities, over a quarter of condominiums are rented out by individual owners. This prevalence of small-scale players as a result of low barriers to entry and high profitability fragments the industry. Furthermore, due to the limited amount of investment grade (complexes with 200 or more units) buildings in Canada, there is little opportunity for larger operators to capture a sizable share of the market...purchase to read more.

    Additional Insights for the Apartment Rental Industry

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

  • Superior financial management and debt management
  • Management of a high-quality assets portfolio
  • Carrying out all necessary maintenance to keep facilities in good condition
  • IBISWorld analysts also discuss how external factors such as Per capita disposable income and Residential renovation expenditure in the Apartment Rental industry impact industry performance..

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    What's in this report

    What is the Apartment Rental Industry?

    Operators in this industry 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.

    Industry Products
  • Studio apartments
  • One-bedroom apartments
  • Two-bedroom apartments
  • Apartments with three or more bedrooms
  • Industry Activities
  • Renting or leasing residential buildings
  • Renting or leasing residential dwellings
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Per capita disposable income
  • Residential renovation expenditure
  • Urban population
  • Housing starts

  • Current Performance
  • Demand outpaces supply
  • Housing market trends
  • Profit and other trends
  • Chart: Revenue Growth

  • Industry Outlook
  • Demand improves with the economy unlike demographic trends
  • Changing composition of rentals
  • Profit and other trends
  • Table: Apartment Rental Industry Revenue Outlook

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

  • Supply Chains
    Key Buying Industries
  • Consumers in Canada

  • Key Selling Industries
  • Construction In Canada
  • Finance and Insurance In Canada
  • Landscaping Services in Canada
  • Property Management in Canada
  • Real Estate Sales & Brokerage in Canada
  • Utilities In Canada

  • Products & Services
  • Two-bedroom apartments
  • One-bedroom apartments
  • Apartments with three or more bedrooms
  • Studio apartments
  • Chart: Apartment Rental Industry Products and Services Segmentation

  • Demand Determinants
  • Demographics
  • Urbanization
  • Housing market
  • Economic conditions

  • Major Markets
  • Consumers 20 to 34 years old
  • Consumers 35 to 54 years old
  • Consumers 65 years old and over
  • Consumers 55 to 64 years old
  • Chart: Major Market Segmentation for the Apartment Rental Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Depreciation
  • Wages
  • Rent and utilities
  • Purchases, marketing and other expenses
  • Chart: Cost Structure Benchmarking – Sector vs Apartment Rental

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Apartment Rental 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 Rental 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 Rental Industry
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • Per capita disposable income (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
  • Another name for an apartment or home.
  • 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 most of its pre-tax income.
  • Vacancy Rate
  • The amount of unoccupied real rental units as a percentage of total available rental units.
  • What Our Customers Say

    Why buy this report?

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

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