Canada didn’t just see households go mad for real estate—companies did too. Data from the Canadian Housing Statistics Program (CHSP) shows corporate ownership surged in 2020. Large companies bought a significant number of homes when interest rates fell. The fastest growing segment of corporate owners were those with at least 100 homes. Yes, you read that correctly.
The Number of Companies In Ontario That Own At Least 100 Homes Has Surged
Ontario has seen a surge in the number of companies that own a lot of homes. The number of companies that own at least 100 homes hit 345 in 2020, up 15% since 2018 when the data starts. This segment of corporate ownership was the fastest growing, but they all grew.
Ontario Companies That Own At Least 100 Homes
The number of companies that own at least 100 homes in Ontario.
Source: Canadian Housing Statistics Program; Better Dwelling.
Smaller corporate buyers are showing solid growth. There were 59,600 (+7.4% from 2018) companies that owned at least one home. Owners of two homes reached 13,435 (+8.0%), owners of 3 to 9 homes hit 11,585 (+7.5%), and owners of 10 to 99 homes hit 2,375 (+3.9%). To repeat, the number of companies that own at least 100 homes is the fastest-growing group of companies.
BC Companies That Own At Least 100 Homes Was The Fastest Growing Segment
A similar but more extreme trend can be observed in BC corporate ownership. There were 85 companies that owned at least 100 homes in 2020, up 21.4% from the earliest data point in 2018. That’s massive growth for a segment that isn’t easy to grow.
BC Companies That Own At Least 100 Homes
The number of companies that own at least 100 homes in the province of BC.
Source: Canadian Housing Statistics Program; Better Dwelling.
Smaller-scale corporate investment in BC has also been surging. There were 26,240 (+9.5%) companies that owned a home in 2020, and 5,870 (+8.8%) that owned two. The number with 3 to 9 properties reached 5,125 (+10.7%) companies, and 10 to 99 properties hit 1,325 (+11.3%) holders.
It’s worth emphasizing how fast the number of companies that owned at least 100 homes grew. There was no change in the number of companies with at least 100 homes from 2018 to 2019, but it jumps in 2020. The number of homes they acquired by these companies was larger than the number acquired by those that owned just one. Helicopter money changed a lot.
Stat Can is still adding more provinces to its analysis, so a comprehensive look is lacking. However, this adds to the other data points that show low rates led to a surge in investor activity. The concentration of ownership and additional demand undeniably contributed to higher prices. That’s beginning to change as rates rise, but no doubt a drop in rates would spark this again.
greed and fear are the well known motivators of all markets. we’ll see which one will be in play the next two years.
I wonder what would happen if they jacked up property taxes 10 fold then gave a beneficial owner’s rebate of the same amount….
@ Scott lol Brillant
What’s considered “a home”?
Would a mid-rise 10-storey apartment block of 100 units be considered 1 or 100 homes?
It’s no wonder Canada’s fertility rate hit a record low 1.492 children this year, with corporations helping to steal Canadians dream of family home ownership.
Historical statistics show the last time Canada’s fertility rate was growing was 1950 at 3.503 to 3.84 in 1959. The sixties avg 3.26, seventies 1.95, eighties & nineties 1.63, to 1.492 in 2022!
There is no easy solution for new Canadian families achieving home ownership going forward. Taking corporations out of the primary residence market would help.
Hopefully tenants stop paying rent and go thru the tribunal for 1 year+ rent free … Corporations get punished
What if a corporation owns a stratified rental apartment building. Does the stats differentiate that kind of holding?
What if a company actually developed 100 homes. Wouldn’t they be helping our housing crisis ?
Or even if they simply bought 100 preconstruction condos, they would have enabled more development and increased supply ?
I have no problem with corporate ownership of multi-res and mixed-commercial properties. But I believe that corporate ownership of single-family homes should be discouraged by provinces and municipalities. Perhaps increasing property taxes and levying special taxes on corporate owners will make these investments less lucrative for them.
Looking forward to the unwind. With inflation pushing wage demands, and the US Fed holding rates, there is no rescue coming that will save over-indebted people or companies. The Zombies are going to get waxed. BOC will as always follow behind the FED. This should cull the people and companies to think housing was a commodity. The pull back and collapse should be slow and epic.
All the covid money went into buying cheap homes @2% mortgages, and for tax purposes Joe Smoe puts them into a company, note the number of companies with only 1 home…
There seems to be a big desire for millennials to rent, they want to be able to move and have no grass…
Most 5 year locked in, so for a 2-5 years cheaper rent, will prices continue to rise? Likely not with higher int rate…..depends on inflation, when I first came to Toronto in the 70’s I could get a house for under $40K, dont know where they went?