Stocks of Fixed Residential Capital

Detailed information for 2012

Status:

Active

Frequency:

Annual

Record number:

5169

The value of net residential stock is estimated on an annual basis. This value represents the replacement cost for the depreciated residential stock.

Data release - March 13, 2013; June 12, 2013 (revised)

Description

The annual estimates of net residential stock represent the residual value of residential stock after correcting the value of these assets according to the specified depreciation function. This value represents the replacement cost for the depreciated residential stock. The stock estimates do not represent the property values for a province or for the country and exclude the value of the land. The statistics on the value of net residential stock and depreciation are essential for the computation of the residential rents at Canada and provincial level.

The value of net residential stock is also used in the National Balance Sheet Accounts. Statistics Canada uses the perpetual inventory method to calculate the value of residential stock. By far, this method is the commonest and is recognized internationally, as mentioned in the published manual by O.E.C.D. "Measuring Capital - Measurement of Capital Stocks, Consumption of Fixed Capital and Capital Services, 2001". This method, which is a way of developing time-series for capital stock, cumulates capital expenditures to obtain estimates of residential stock for a given year. This calls for information about the value of investments, price indexes and the depreciation method. The net perpetual inventory method essentially consists of adding to the capital stock, annual residential construction investment and subtracting the depreciation and value of demolished dwellings units during the year.

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

Subjects

  • Construction
  • Economic accounts
  • Residential construction

Data sources and methodology

Target population

All private dwellings (with the exception of mobile homes) as defined by the Census of Population (record number 3901).

Instrument design

This methodology does not apply.

Sampling

This methodology does not apply.

Data sources

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

The annual value of the Stock of Fixed Residential Capital is derived from estimates of the value of residential construction investment (record no. 5016).

Error detection

This methodology type does not apply to this statistical program.

Imputation

This methodology does not apply.

Estimation

To obtain the annual value of net capital formation, we must subtract from the capital formation the value of demolitions and of depreciation. The value of depreciation is calculated by applying a geometric rate of 2% to the value of the capital stock for the previous period and of 1% to the value of gross capital formation for the current period. Net capital formation for the current period is added to the value of stock for the preceding period to obtain the value of the stock for the current period.

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

The annual estimates of the residential stock and its components are compared periodically with data trends related to the housing sector. Any irregularities identified are carefully analysed and any corrections are made before the official release. Also data that make up the stock, come from various surveys, from a number of divisions of Statistics Canada and these data are checked for consistency and quality by their source division.

Disclosure control

Statistics Canada is prohibited by law from releasing any information it collects that 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.

In order to prevent any data disclosure, confidentiality analysis is done using the Statistics Canada Generalized Disclosure Control System (G-Confid). G-Confid is used for primary suppression (direct disclosure) as well as for secondary suppression (residual disclosure). Direct disclosure occurs when the value in a tabulation cell is composed of or dominated by few enterprises while residual disclosure occurs when confidential information can be derived indirectly by piecing together information from different sources or data series.

Revisions and seasonal adjustment

Annual data are published twice each year, in March and in June. In June, data for the reference year and for the previous three years may be revised.

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: