Home sweet home: Concerns over a possible housing bubble will stunt industry growth

Operators in the Home Builders industry construct single-family homes in which units are separated by walls and typically have no units above or below them. Over the past five years, the industry suffered from weak economic growth brought on by the rapid decrease in commodity prices, a staple of the Canadian economy. Over the coming years, the continued fear of a housing bubble, combined with pervasively high household debt levels, is anticipated to hurt consumer spending on new housing...read more.

Industry Statistics & Market Size
Revenue
$36bn
Annual Growth 13-18
1.1%
Forecast Growth 18-23
Profit
Employment
90,205
Businesses
66,827
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • The industry suffered from weak economic growth brought on by the rapid decrease in commodity prices
  • A leading cause of suppressed demand for new home construction has been declining private investment in housing starts
  • Concerns of a property bubble in Canada’s cities will remain a prominent issue
  • Industry Report - Industry SWOT Analysis Chapter

    The Homebuilders industry in Canada is in the mature stage of its life cycle. The industry is characterized by widespread acceptance of industry services and low technological change that is focused on improving efficiency. Over the past five years, the industry has experienced highly volatile conditions because of a slowdown in the housing market due to ongoing fears of a bubble, as well as weak macroeconomic conditions. The industry is highly reliant on new investment from the private sector and was therefore hurt by collapsing consumer and business confidence.Industry value added (IVA), used to measure an industry's contribution to the overall economy, is projected to grow an annualized 0.6% over the 10 years to 2023. Con...purchase to read more.

    Additional Insights for the Homebuilders Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Homebuilders Industry are

  • Having a high prior success rate (including completed prior contracts)
  • Access to multiskilled and flexible workforce
  • Ability to expand and curtail operations rapidly in line with market demand
  • IBISWorld analysts also discuss how external factors such as Housing starts and Value of residential construction in the Homebuilders industry impact industry performance..

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    What's in this report

    What is the Homebuilders Industry?

    This industry primarily constructs single-family homes in which units are separated by ground-to-roof walls and have no units above or below. Industry operators include general contractors, design-build firms and single-family construction management companies acting as general contractors and builders.

    Industry Products
  • Single unit house construction
  • Double house construction
  • Row house construction
  • Industry Activities
  • Single-family home building and general contracting
  • Managing single-family housing construction
  • Low-income single-family housing construction
  • Additions, alterations, reconstruction, maintenance and repair work of single-family homes
  • Managing residential remodelling construction
  • Handyman construction for residential buildings
  • Providing home improvement services (e.g. adding on, remodelling and renovating)
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Housing starts
  • Value of residential construction
  • Per capita disposable income
  • Overnight rate

  • Current Performance
  • Government assistance
  • Thinning market
  • Regulatory worries
  • Chart: Revenue Growth

  • Industry Outlook
  • Leveraged households hurt demand
  • An unsure future
  • Table: Homebuilders Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Homebuilders Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Finance and Insurance In Canada
  • Apartment Rental in Canada
  • Consumers in Canada

  • Key Selling Industries
  • Cement Manufacturing in Canada
  • Construction In Canada
  • Lumber Wholesaling in Canada
  • Ready-Mix Concrete Manufacturing in Canada
  • Roofing, Siding & Insulation Wholesaling in Canada
  • Sawmills & Wood Production in Canada

  • Products & Services
  • Single unit house construction
  • Row house construction
  • Double house construction
  • Chart: Homebuilders Industry Products and Services Segmentation

  • Demand Determinants
  • Short-term influences
  • Long-term influences

  • Major Markets
  • Individuals aged 55 to 64
  • Individuals aged 45 to 54
  • Individuals aged 35 to 44
  • Individuals aged 65 to 74
  • Individuals aged 25 to 34
  • Individuals aged 75 to 84
  • Individuals aged 85 and older
  • Individuals aged 15 to 24
  • Chart: Major Market Segmentation for the Homebuilders Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Other costs
  • Chart: Cost Structure Benchmarking – Sector vs Homebuilders

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Homebuilders Industry

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    Capital Intensity
  • Chart: Level of Capital Intensity for the Homebuilders Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Homebuilders Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • Housing Starts (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Developer
  • An enterprise that prepares a real estate site for residential or commercial use, raising capital, securing zoning approvals and hiring contractors to design, construct and develop property.
  • General Contractor
  • An individual or company that manages the construction of a structure for a property owner or developer. A general contractor may retain its own labour force or use subcontractors for projects.
  • Housing Starts
  • The number of new homes under construction during a specified period of time and a key economic indicator of the health of the housing market.
  • What Our Customers Say

    Why buy this report?

    The Homebuilders market research report provides key industry analysis and industry statistics, measures market size, analyzes current and future industry trends and shows market share for the industry’s largest companies. IBISWorld publishes the largest collection of industry reports so you can see an industry’s supply chain, economic drivers and key buyers and markets.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Homebuilders:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Homebuilders market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Homebuilders, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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