Market Insights Financial Real Estate Residential Real Estate

Residential Real Estate Leases - Canada

Canada

In Canada, the projected revenue for the Residential Real Estate Leases market market is estimated to reach US$63.61bn by 2024.
The dominant segment within this market is House Leases, which is projected to reach a market volume of US$32.83bn in 2024.
Over the period of 2024 to 2028, the revenue is expected to display a Compound Annual Growth Rate (CAGR) of 4.01%, leading to a market volume of US$74.43bn by 2028.
The demand for residential real estate leases in Canada is increasing due to a growing population and a stable economy.

Key regions: France, United Kingdom, Australia, Japan, China

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Analyst Opinion

The Residential Real Estate Leases market in Canada has been experiencing steady growth in recent years.

Customer preferences: One of the main customer preferences driving the growth of the Residential Real Estate Leases market in Canada is the desire for flexibility. Many Canadians are opting for leasing rather than buying a home due to the flexibility it offers. Leasing allows individuals to have the freedom to move to different locations without the financial commitment and responsibilities associated with owning a property. Additionally, leasing provides an opportunity for individuals to test out different neighborhoods and living arrangements before making a long-term commitment.

Trends in the market: A notable trend in the Residential Real Estate Leases market in Canada is the increasing demand for rental properties in urban areas. This can be attributed to several factors such as the growing population in cities, the desire for proximity to amenities and job opportunities, and the rising cost of homeownership. As a result, there has been a surge in the construction of rental properties in urban centers to meet the growing demand. Another trend in the market is the rise of purpose-built rental buildings. These are specifically designed and constructed for rental purposes, offering a range of amenities and services to attract tenants. Purpose-built rental buildings are becoming increasingly popular in Canada as they provide a hassle-free living experience and often offer additional services such as concierge, fitness centers, and communal spaces.

Local special circumstances: One of the local special circumstances that has influenced the Residential Real Estate Leases market in Canada is the high cost of homeownership. In major cities like Toronto and Vancouver, the price of purchasing a home has become increasingly unaffordable for many Canadians. This has led to a growing number of individuals and families opting for leasing as a more affordable alternative.

Underlying macroeconomic factors: Several underlying macroeconomic factors have contributed to the development of the Residential Real Estate Leases market in Canada. One of these factors is the low interest rate environment. With low mortgage rates, it has become more attractive for individuals to lease rather than buy a property. Additionally, the strong job market and steady economic growth in Canada have also contributed to the demand for rental properties. In conclusion, the Residential Real Estate Leases market in Canada is experiencing growth due to customer preferences for flexibility and affordability. The increasing demand for rental properties in urban areas, the rise of purpose-built rental buildings, and the high cost of homeownership are all contributing to the development of the market. Additionally, underlying macroeconomic factors such as low interest rates and a strong job market are also driving the growth of the Residential Real Estate Leases market in Canada.

Methodology

Data coverage:

Figures are based on total and average revenue of residential apartment leases.

Modeling approach:

Market size is determined by a bottom-up approach. We use national statistics, international organizations, and industry associations to analyze the markets. To estimate the market size for each country individually, we use relevant key market indicators and data from country specific industry associations such as GDP, price level index, household wealth, household size, number of renter and owner households, housing consumer spending per capita.

Forecasts:

We use a variety of forecasting techniques, depending on the behavior of the market, for instance, exponential trend smoothing. The main drivers are GDP per capita, population, number of renter and owner households, price level index, housing consumer spending per capita.

Additional Notes:

Data is modeled using current exchange rates. The market is updated twice per year in case market dynamics change. The impacts of the Russia-Ukraine war considered at a country-specific level.