Multi-Family Real Estate Sector Contributes $24 Billion to Canadian Economy, Supports 140,100 Jobs
TORONTO, Jan.12, 2015 /CNW/ - 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.
To purchase the full report, visit realpac.ca > Research > CRE Contribution to the Canadian Economy > Multi-Family or http://www.realpac.ca/?page=MultiFamilyContribu.
About REALpac
REALpac is Canada's most senior, influential and informative voice in the real property investment industry. REALpac brings together the industry's Chief Executives to collectively influence public policy, to educate government and the public, to ensure stable and beneficial real estate property and capital markets and to promote the performance of the real property sector in Canada. Member companies include publicly traded real estate companies, real estate investment trusts (REITs), private companies, pension funds, banks and life insurance companies with investment real estate assets each in excess of $100 million, large owner/occupiers and pension fund advisers as well as individually selected investment dealers and real estate brokerages. The commercial real estate sector makes a substantial contribution to the Canadian economy, generating $63.3 billion in economic activity in 2011. Collectively, REALpac members currently own in excess of $200 Billion CAD in real estate assets located in the major centres across Canada. Visit us at realpac.ca.
SOURCE Real Property Association of Canada
Media are invited to contact Carolyn Lane, VP, Communications, [email protected], to receive a complimentary copy of the report.
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