Canada’s Housing Affordability Crisis Intensifies As Q1 2024 Immigration Jumps 47%

Canada is facing a worsening housing affordability crisis as the country experiences an unprecedented surge in population growth. According to Statistics Canada labor force data, the working-age population has increased by a staggering 411,400 people in the first four months of 2024, a 47% increase compared to the same period in 2023.

National Bank economists warn that this demographic shock could further strain the already tight housing market, particularly in major cities such as Toronto, Montreal, and Vancouver, where population growth has more than doubled compared to the previous year.

Worse, the federal government’s plans to reduce immigration levels from 2025 onwards may have inadvertently contributed to the current population boom, as many people rush to enter the country before the new policies take effect. This surge in demand is expected to put additional pressure on home prices and rental rates, which are already at record lows.

Matthieu Arseneau, the deputy chief economist at the National Bank, predicts that vacancy rates could drop below 1% due to the rapid population growth. This, combined with the anticipated interest rate cuts in the second half of the year, is unlikely to improve affordability for first-time homebuyers.

The population growth is also creating challenges for the central bank in managing inflation, as rising rental prices could push the Consumer Price Index higher. In March, rent jumped by 8.5%, highlighting the severity of the situation.

Immigration, Refugees and Citizenship Canada acknowledges the acute challenges related to housing and is working on strategies to support the country’s continued need for immigration while addressing the housing crisis. However, economists believe that it will take several years to alleviate the pressure on the housing market, given the population boom over the past two years.


Information for this story was found via Statistics Canada, and the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

One Response

  1. Rarely in these articles is it ever mentioned our labour shortage crisis and the need we have for immigration. Instead….inflammatory headlines abound as to the housing crisis the federal government is not fixing (right now). This crisis was created in the 70s….and ignored by all subsequent governments since.

Leave a Reply

Video Articles

Endeavour Mining Q1 Earnings: Cash Flow Is King

G Mining Oko West Feasibility: Move Fast, Break.. Nothing?

New Gold Q1 Earnings: What’s Behind The Market’s Surprising Reaction?

Recommended

Giant Mining Encounters Native Copper As Hole MHB-34 Hits 563 Metres Depth

Verses Hits Commercialization Stage With Genius AI Platform

Related News

Diplomatic Tensions Impact Indian Student Enrollment in Canada

In a recent interview, Canadian Immigration Minister Marc Miller disclosed a significant decline in study...

Friday, January 19, 2024, 11:49:00 AM

Canada Finally Realizes It Needs To Factor In Housing And Healthcare Capacity To Immigration Plan

Plot twist: the federal government has decided that it’s finally time to consider housing, health...

Wednesday, November 1, 2023, 03:46:00 PM

Canadian Population To Hit 100 Million, Thanks To Immigrants

According to the Century Initiative chief executive Lisa Lalande, Canada “has reached the point of...

Wednesday, May 31, 2023, 11:42:00 AM

Economist Reveals Canada May Be Undercounting Its Non-Permanent Residents by Over a Million

Canada’s official count of non-permanent residents, which includes foreign students, has been revealed to be...

Sunday, September 3, 2023, 09:03:00 AM

In Canada, The Wealth Gap Is All About Homeownership

A recent report from TD Bank uncovers a new narrative in Canada’s wealth inequality: it...

Saturday, October 15, 2022, 09:00:00 AM