Stock and Consumption of Fixed Residential Capital (SCFRC)

Detailed information for 2016

Status:

Active

Frequency:

Annual

Record number:

5169

This program produces annual estimates of residential construction investment (capital investment flows), demolitions, depreciation and net stock, by asset type, and by province and territory.

Data release - November 17, 2017

Description

This program produces annual estimates of investment flows, demolitions, depreciation and net stock, by province and territory for new residential construction, renovations and ownership transfer costs. Estimates of net stock and depreciation are calculated using the geometric depreciation method and are available historically in constant, current and chained (Fisher) dollars.

Principal internal clients:
- The Canadian System of National Accounts uses the investment prices, depreciation and stock estimates as inputs into Gross Domestic Product and into the Input-Output national and provincial tables.
- The net residential capital stock estimates are used in the National Balance Sheet Accounts.

The statistics are also used by a wide range of analysts from the public and private sectors.

Reference period: Calendar year

Subjects

  • Construction
  • Residential construction

Data sources and methodology

Target population

All investment for residential buildings (single, doubles, rows and apartments) and all ownership transfer costs as well as all renovations made on existing residential buildings in the Canadian economy.

Instrument design

This methodology does not apply.

Data sources

Data collection for this reference period: calendar year

Data are collected from other Statistics Canada surveys and/or other sources.

Estimates of residential construction investment are benchmarked to the Provincial and Territorial Gross Domestic Product by Income and by Expenditure Accounts (record number 1902), by asset. Data sources for new residential construction include Building Permits Survey (record number 2802) and the Starts and Completions Survey of the Canada Mortgage and Housing Corporation (CMHC). The main data source for renovations is the Survey of Household Spending (record number 3508). Sources of ownership transfer costs are the Real Estate Agents, Brokers, Appraisers and Other Real Estate Activities Survey (record number 4706) as well Multiple Listing Service (MLS) sales, units and price data from the Canadian Real Estate Association (CREA).

Error detection

Not applicable

Estimation

The value of capital stock is estimated using the perpetual inventory method (PIM) whereby investment flows are accumulated and depreciated over time, giving rise to a stock of assets. In particular, the PIM uses a time series of investment flows, demolitions, asset lives and prices, and assumptions regarding methods of depreciation when developing estimates of the residential capital stock. The essence of the perpetual inventory method is to add investment estimates to the capital stock each year and to subtract demolitions and depreciation.

The starting point for these cumulations was established in 1941, with the value of the initial stock of dwellings being estimated using data from the 1941 Census of Population.

Quality evaluation

Data are analyzed for time series consistency, links to current economic events, issues arising from the source data, and respect to coherence. Any irregularities identified are carefully analyzed and any corrections are made before the official release.

Disclosure control

Statistics Canada is prohibited by law from releasing any information it collects which could identify any person, business, or organization, unless consent has been given by the respondent or as permitted by the Statistics Act. Various confidentiality rules are applied to all data that are released or published to prevent the publication or disclosure of any information deemed confidential. If necessary, data are suppressed to prevent direct or residual disclosure of identifiable data.

Revisions and seasonal adjustment

Estimates are released, annually, in the fall after the release of the Provincial and Territorial Gross Domestic Product by Income and by Expenditure Accounts. The release comprises revisions to the two previous years. Statistical revisions are carried out in order to incorporate the most recent information from surveys, taxation statistics, public accounts, etc., as well as from the annual benchmarking process of the Input-Output Accounts and the Provincial and Territorial Gross Domestic Product by Income and by Expenditure Accounts.

Data accuracy

No direct measures of the margin of error in the estimates can be calculated. The quality of the estimates can be inferred from analysis of revisions and from a subjective assessment of the data sources and methodology used in the preparation of the estimates.

Documentation

Date modified: