Multi-Family Real Estate Sector Contributes $24 Billion to Canadian Economy, Supports 140,100 Jobs
Capital investment in the multi-family real estate sector totaled $10.1 billion in 2013, according to a report released by the Real Property Association of Canada (REALpac) titled "The Contribution of the Multi-Family Real Estate Sector to the Canadian Economy". Some $2.9 billion was spent on new buildings, with the rest ($7.2 billion) invested in capital improvements, renovations and the upgrading of existing buildings.
The ongoing operations of multi-family rental buildings also generated about $1.3 billion in building management fees and approximately $211 million in brokerage fees from sales and leasing of multi-family rental buildings in 2013.
According to Thomas Schwartz, President & CEO of CAPREIT, "Canada is fortunate to have an efficient and responsible multi-family real estate industry. 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."
Taken together, the construction and investment in multi-family rental buildings and the ongoing operation of these buildings make a substantial contribution to the Canadian economy, producing $24 billion in annual economic activity. These activities add to the economy in various ways by:
- Supporting 140,100 jobs each year, many of which are high-paying professional jobs;
- Generating $8.3 billion in income, related to personal income and other sources of income;
- Generating $5.0 billion in corporate profits earned by many small and medium companies, and some of the largest companies in Canada, such as pension funds and insurance companies; and
- Contributing $3.1 billion in personal and corporate income tax revenues for the federal and provincial governments.
The multi-family rental sector plays an important role in Canada's economy. The development and construction of multi-family rental buildings and their daily operations directly support thousands of work opportunities for Canadians and adds tremendous value to Canada's gross domestic product. In addition, the sector represents a significant share of the housing stock in Canada, providing shelter to millions of Canadians. In addition, owners of the multi-family rental buildings contribute substantial revenue to municipalities and school boards across Canada through realty taxes.