Canada is a country that welcomes immigrants, and this has a big effect on the housing market. As more people move to cities like Toronto, Vancouver, and Montreal, the need for homes is rising.
In 2024, Canada welcomed over 500,000 new immigrants, the highest number in recent years. Canada plans to keep bringing in 500,000 immigrants each year for the next few years.
Most immigrants move to big cities where there are more jobs and services. As more people arrive, the need for homes to rent or buy keeps growing.
Popular Cities for Immigrants
The top cities for immigrants in Canada are Toronto, Vancouver, and Montreal. About 70% of immigrants choose to live in these cities because of strong jobs and diverse communities.
Well, more than half of Toronto’s population is made up of immigrants. Vancouver and Montreal are also seeing many newcomers, which is increasing the need for homes.
As more people move to these cities, the demand for homes is growing fast. This is causing rent and home prices to go up, making it harder for first-time buyers and renters to find affordable places.
Renting Is Becoming More Common
Many immigrants rent homes first before buying one. In cities like Toronto and Vancouver, the need for rental homes has gone up a lot.
There aren’t enough rental units, so rent prices have increased. For example, in Toronto, the rent for a one-bedroom apartment has gone up more than 10% in the last year.
Real estate investors are noticing this high demand and are helping immigrants find places to rent. Real estate agencies in Canada are focusing on helping newcomers by offering rental services to meet this need.
Home Prices Are Rising
As more people move to Canada, the need for homes is pushing home prices higher. In Toronto, home prices have gone up by 6% over the past year, and in Vancouver, they’ve risen by 4.5%.
Even with high interest rates, these cities remain popular, keeping home demand strong.
As Canada’s housing market faces continued pressure as high interest rates persist, buyers and investors face challenges.
This has led to bidding wars, where buyers offer more than the asking price, making it harder for first-time buyers to afford a home.
One big issue in Canada’s Housing Market right now is the high interest rates. The Bank of Canada raised interest rates to control inflation, which makes mortgages more expensive. This has slowed the market slightly, but immigration still keeps demand for homes high.
For many first-time buyers, especially immigrants, the high mortgage rates make it harder to buy a home.
Many are renting for a few years while they save for a bigger down payment or wait for interest rates to go down. This keeps the rental market strong, which is why rent prices keep rising in many cities.
As immigration continues to grow, investing in areas with high demand, like Mississauga waterfront condos or downtown Toronto, can be a smart choice. Investors are focusing on areas with many immigrants because the need for housing will stay high for a long time.
