Carrying Costs

Learn about carrying costs in Canadian real estate — what they are, why they matter, and how they impact investment returns.

Carrying Costs

August 07, 2025


What are Carrying Costs?

Carrying costs, also known as holding costs, are the ongoing expenses incurred by property owners while holding real estate before it is sold, leased, or redeveloped.

Why Carrying Costs Matter in Real Estate

In Canadian real estate, carrying costs impact profitability and cash flow, especially for investors and developers.



Common carrying costs include:



Understanding carrying costs helps owners evaluate investment feasibility and plan exit strategies.

Example of Carrying Costs in Action

The developer factored carrying costs like property taxes and insurance into the project's overall budget.

Key Takeaways

  • Recurring expenses while holding a property
  • Includes taxes, mortgage, and maintenance costs
  • Affects cash flow and project profitability
  • Important for investors and developers
  • Helps determine holding period feasibility

Related Terms

Additional Terms

Public Realm Improvements

Public realm improvements are enhancements to public spaces such as sidewalks, parks, plazas, and streetscapes, often funded or contributed by. more

Mortgagee in Possession

A mortgagee in possession is a lender who takes control of a property after borrower default, but before foreclosure or power of sale. The lender. more

Lease Surrender Agreement

A lease surrender agreement is a negotiated contract between a landlord and tenant that ends a lease before its scheduled expiration. Terms may. more

Green Infrastructure

Green infrastructure refers to natural or engineered systems that manage stormwater, reduce heat, and improve sustainability in developments.. more

Escrow Holdback

An escrow holdback is a portion of funds withheld at closing and held in escrow until specific conditions are met, such as completion of repairs,. more

Underused Housing Tax

The Underused Housing Tax (UHT) is a federal annual 1% tax on the value of vacant or underused residential property owned by non-resident,. more

More For You

Canada Housing Starts Rise In 2025, But Condo Pipeline Weakens: CMHC

Canada Housing Starts Rise In 2025, But Condo Pipeline Weakens: CMHC

Canada added more new housing supply in 2025, driven largely by record rental construction and a growing share of missing middle housing — but new data suggests underlying vulnerabilities are building, particularly in major ownership markets like Toronto and Vancouver.

According to the Spring 2026 Housing Supply Report from the Canada Mortgage and Housing Corporation (CMHC), national housing starts rose 6% year-over-year in 2025, to 259,000 units. Activity exceeded the 10-year average in nearly every major market, with one notable exception: Toronto, where starts fell well below historical norms and reached the lowest per-capita level among Canada’s seven largest census metropolitan areas (CMAs).

Keep ReadingShow less

Peterson Proposes 34-, 29-Storey Rental Towers On SE Marine Drive

Peterson Proposes 34-, 29-Storey Rental Towers On SE Marine Drive

The two-tower project proposed for 605-695 SE Marine Drive in Vancouver. (MCMP Architects, Peterson)

Fresh off of a brand refresh, Vancouver-based Peterson is now advancing one of its largest planned projects to date, according to a new rezoning application published by the City of Vancouver last week.

The subject site is 605-695 SE Marine Drive, located at the northwest corner of the intersection with Fraser Street. The L-shaped site is currently occupied by a large apartment complex, known as Marine Terrace, which extends up Fraser Street to E 65th Avenue. The property is a single parcel that BC Assessment values at $31,874,000 in its latest assessment, and 605 SE Marine Drive is held by Peterson under Fraser Marine Drive Holdings Inc.

Keep ReadingShow less

CALIBRATED Lands In Vancouver For Women Leading Construction, Development, Industrial Sectors

CALIBRATED Lands In Vancouver For Women Leading Construction, Development, Industrial Sectors

RHONDA DENT PHOTOGRAPHY/Shauna Moran Coaching

A leadership program aimed at women working in high-pressure, industrial sectors is landing in Vancouver this spring.

CALIBRATED: A Leadership Experience for Women Who Build will take over the Vancouver Club on May 13, bringing together women in senior leadership, executive, and technical roles across construction, development, infrastructure, energy, water, environment, and resources.

Keep ReadingShow less

Tightening Supply Could Support GTA Home Sales Later This Year: TRREB

Tightening Supply Could Support GTA Home Sales Later This Year: TRREB

After a softer start to the year, tightening market conditions could set the stage for a rebound in Greater Toronto Area home sales later in 2026, according to the Toronto Regional Real Estate Board.

New data from TRREB shows that while resale transactions declined year-over-year in February, new listings fell at a much sharper pace — a dynamic that could increase competition if demand begins to reassert itself.

Keep ReadingShow less

Over 250 New Affordable Homes Break Ground In Regent Park

Over 250 New Affordable Homes Break Ground In Regent Park
Revitalization of Regent Part, Toronto

Toronto’s Regent Park is poised to welcome 271 new affordable homes as the next phase of its revitalization moves forward.

A new 26-storey tower, at the southeast corner of Gerrard Street East and Dreamers Way, will deliver 136 replacement rent-geared-to-income (RGI) units and 135 new affordable rental homes, with a focus on family-sized apartments. New indoor and outdoor community spaces are also part of the development.

Keep ReadingShow less

Moving Day: February 2026 Industry Hires And Promotions

Moving Day: February 2026 Industry Hires And Promotions

From left: Jennifer Drury, Conwest; John Jung, Prodigy Group; Annely Zonena, City of Toronto; Jordan Dawson, Broccolini; Yasmien Fadl, TD; Aziz Lakdawala, Brookfield Properties

You like to be in the know. We know.

For your information, reference, and networking needs, here are the moves, hires, and promotions the real estate and development sector saw in February 2026:

Keep ReadingShow less

Crestpoint Buys 145 Wellington For $50.8M, Site Slated For H&R REIT Tower

Crestpoint Buys 145 Wellington For $50.8M, Site Slated For H&R REIT Tower

The office tower at 145 Wellington Street West in Toronto (left) and the planned 65-storey tower (right). / Sullivan Law | Partisans with Turner Fleischer

The downtown Toronto office building located at 145 Wellington Street West — that was set to be redeveloped into a 65-storey tower — has officially been sold, leaving the fate of the planned project up in the air.

The 13-storey Class A office building constructed in 1987 — located kitty-corner from Roy Thompson Hall and just one block away from the Metro Toronto Convention Centre — was formerly owned by Toronto-based H&R REIT (TSX: HR.UN), which has made various development proposals over the years.

Keep ReadingShow less

If The Future Of Toronto Depends On Density, Why Do We Punish Those Who Embrace It?

If The Future Of Toronto Depends On Density, Why Do We Punish Those Who Embrace It?
Landscape view of Toronto downtown in winter.

This article is authored by Carl Laffan, who provides architectural services in Toronto, specializing in office, residential, and mixed-use projects.

The City of Toronto’s recent “gentle-density” initiative, permitting multiplexes as-of-right across the city, was proposed as an inoffensive introduction of low-rise density within the single-family neighbourhoods that cover 70% of Toronto. Although well researched and widely supported, political pressure from local opposition groups ultimately imposed bedroom caps and size limits, effectively neutering the initiative. During a period when the Canada Mortgage and Housing Corporation reported we needed 150,000 new homes, multiplex permits issued since its adoption are reported to provide only 1,288: the equivalent of two high-rise towers.

Keep ReadingShow less
Privacy PolicyAbout UsTerms of UseAdvertise with UsJobsContact UsRSS Feed
All rights reserved SiteMedia © 2026.