Mom-and-pop investors are outpacing big investors, StatCan data shows

Individuals, often referred to as "mom-and-pop investors," have become the dominant force in Canada's rental property market, significantly outpacing institutional investors over the last decade. Data from Statistics Canada reveals that small-scale investors, defined as individuals owning up to five properties, held the largest share of investment properties by assessed value across most provinces studied. This contrasts with the situation in the United States, where Real Estate Investment Trusts (REITs) and other large corporations have faced increased scrutiny for their significant market share. In Canada, institutional investors, which include businesses like REITs, pension funds, and large family-owned enterprises, owned considerably smaller portions of rental properties. For instance, in British Columbia, Ontario, and Prince Edward Island, small-scale investors owned between 49.4% and 57.1% of rental properties by 2021, while institutional investors held between 16.6% and 23.6%. The report suggests that the high number of condominium apartments in provinces like British Columbia and Ontario has made these properties more accessible to individual investors. This trend coincides with a substantial rise in property values, which doubled between 2011 and 2021, and a 42% increase in rents. Housing researcher Carolyn Whitzman cautions against sentimentalizing small landlords, stating that while many are good, a significant number act with "near impunity." She argues that the system continues to prioritize housing as an investment rather than an essential need, a difficult truth to confront. However, Royal Bank of Canada economist Rachel Battaglia sees a positive aspect in low market concentration, suggesting it fosters healthy competition and prevents any single entity from dominating the market.

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Small-scale investors (individuals) owned the largest share of investment properties in terms of assessed value across all the provinces studied, except Nova Scotia.