November 26, 2022

Lefteriverse

Professional Real Estate Experts

Canadian Companies That Own At Least 100 Homes Have Surged With Cheap Money

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.