Real estate rental and leasing and property management industries, 2023

Rental, leasing and property management industries

Residential and non-residential real estate lessors and real estate property managers industries generated $141.6 billion in operating revenue in 2023, up 6.3% from 2022. This growth was driven by a second consecutive year of significant population increases. The non-residential industry continued to expand due to strong retail activity and e-commerce, boosting demand for logistic centres.

Operating expenses for the residential and non-residential real estate lessors and real estate property managers industries increased 5.5% to $90.6 billion in 2023. The operating profit margin increased marginally from 35.5% in 2022 to 36.0% in 2023.

Lessors of residential buildings and dwellings

Total revenue from lessors of residential buildings exceeded grew by 8.2% from 2022 to exceed $60.2 billion in 2023. Expenses rose 7.1% to $38.0 billion, resulting in a profit margin of 36.9%, up slightly from 36.2% in 2022. In 2023, Canada's housing market faced challenges on account of high interest rates, low housing starts, and a lack of affordable housing.

Lessors of non-residential buildings

Revenue for lessors of non-residential buildings rose 5.1% to $72.2 billion in 2023. Expenses in this industry were up 4.0% to $45.3 billion, leading to a profit margin of 37.3%, up from 36.7% in 2022.

Trends in 2024

Trends observed in 2024 were mixed and showed that the residential vacancy rates decreased nationally owing to insufficient supply of rental housing and the cost of homeownership. Nationally, the non-residential vacancy rate remained stable but saw differences between regions and type of office space.

Data on rents and vacancy rates were taken from the document Housing Market Outlook, spring 2024, produced by the Canada Mortgage and Housing Corporation's Canada.