Apartment & Condominium Construction in Canada - Industry Market Research Report

Apartment & Condominium Construction in Canada - Industry Market Research Report

Apartment & Condominium Construction in Canada

Investment pouring into residential housing construction has benefited apartment and condominium construction activity in Canada in recent years. Immigration into Canada has spurred record population growth, fueling a deepening housing crisis. In major urban centres, demand for housing units has exceeded the supply for years, inciting investment in retrofits and multistory apartment dwellings. Apartment contractors have been vital in filling the gaps in housing, with a low-interest environment and chronically low vacancy rates enticing investors. The imbalance between housing supply and demand kept investors bullish on apartments through pandemic uncertainty, supporting growth. Still, the pandemic's disruption to global supply chains didn't spare contractors, with equipment and material costs reaching unprecedented highs. Long-lasting impacts of the pandemic continue to disrupt contractors, with elevated interest rates and inflation taking hold of residential construction trends in 2023. In all, industry-wide revenue has been rising at a CAGR of 3.6% over the past five years – totaling an estimated $49.2 billion in 2023 – when revenue will drop an expected 5.0%.

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 renovation construction, speculative builders or contractors that build on their own account for sale.

This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.