StatCan study examines the role real estate investors play in rent increases

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In recent decades, home and rental prices have risen significantly in Canada, raising questions about the role of real estate investors both big and small when it comes to housing affordability.

A Statistics Canada (StatCan) study released Tuesday examined the ways in which individual and institutional investors have changed housing markets across the country both for renters and buyers.

The study focused largely on the role of institutional investors who have grown their share of rental property ownership in North America, StatCan said.

“In the United States, real estate investment trusts (REITs) and institutional investors have acquired an increasing number of residential properties in recent years,” the statistics agency said in the study.

“In the house and condominium apartment segment of the housing market, this increasing presence puts these investors in direct competition with individuals looking to purchase a property, raising concerns about housing affordability.”

The growing presence of REITs in Canada’s housing market has been noted by various other studies in recent decades, according to StatCan. However, the agency’s own study found that small-scale investors still owned the majority of the rental housing stock in the markets that were examined.

Small-scale individual investors owned the largest share of rental properties in every province that was looked at in the study except for Nova Scotia, StatCan said. The agency classifies those investors as anyone who owns five or fewer properties, excluding any whose properties are for personal use.

“In 2022, their share of the assessed value of rental properties ranged from 35.9 per cent in Nova Scotia to 57.1 per cent in Prince Edward Island,” StatCan said in the study.

Meanwhile, the growing presence of larger scale investors across the country can lead to concentrated or non-competitive rental markets, StatCan noted in the study, which can contribute to higher baseline rent prices.

However, StatCan’s most recent data from 2022 suggested that rental markets in the 12 areas it analyzed in Prince Edward Island, Nova Scotia, New Brunswick, Ontario, Manitoba and British Columbia remained “non-concentrated and competitive.”

The lower concentration aligns with more recent data from the Canada Mortgage and Housing Corporation, which found that in 2025, the price difference between units rented by REITs and other types of landlords was not statistically significant, StatCan noted.

Big investors ‘mostly absent’ from housing market

StatCan said that in the non-rental housing market in general, large institutional investors are “mostly absent.”

“In the six provinces studied, the share of the stock of houses owned by institutional investors ranged from 0.1 per cent (Prince Edward Island and Manitoba) to 0.4 per cent (Ontario) in 2022,” StatCan said.

“The ‘house’ category includes single-detached houses, semi-detached houses, row houses and mobile homes. Houses were generally owned by owner-occupants. Otherwise, they were mostly owned by smaller-scale individual investors and individual investors for personal use.”

These findings suggest institutional investors such as REITs have made the majority of their inroads into Canada’s housing market by purchasing rental properties rather than single-family homes.