Canada’s Population Is Up 1.27 Million in 12 Months, and People Still Can’t Afford to Buy a House
Recent data reveals that Canada has seen a staggering increase of 2.87 million people over the past three years. This influx, equivalent to the combined populations of Manitoba and Saskatchewan, has placed significant pressure on the housing market. So significant that even a long-awaited rate cut couldn’t cut it.
Statistics Canada reports that in the 12 months leading up to June 30, the country witnessed a record-breaking population growth of 1.27 million. This follows increases of 1.06 million and 0.54 million in the two preceding years, respectively. The rapid expansion is primarily attributed to immigration policies aimed at addressing labor shortages and bolstering economic growth.
Related: Canadian Immigration Has Failed to Bring In People Canada Actually Needs
This population explosion is occurring against the backdrop of a challenging real estate market. Despite a recent quarter-point rate cut by the Bank of Canada, housing affordability remains a critical issue. The modest reduction in mortgage rates has provided only minimal relief to potential homebuyers, with experts suggesting that more substantial rate cuts may be necessary to stimulate the market effectively.
The surge in population has created a vast pool of new housing seekers, potentially revitalizing demand in the real estate sector. However, the market’s ability to absorb this influx depends on various factors, including further interest rate reductions, employment trends, and overall economic conditions.
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