A new study by the Fraser Institute reveals that immigration is a major driver of Canada’s housing gap, as the number of new homes built fails to keep up with the number of new people arriving in the country.
Analysts found that Canada’s population growth has outstripped the number of housing completions by a wide margin in the last five years, leading to high housing costs and affordability challenges for many Canadians.
The research compares the annual population growth and housing completions in Canada from 1972 to 2022, using the latest available data. It finds that from 2018 to 2022, Canada added an average of 553,568 people per year, of which 321,065 were immigrants.
This means that immigrants accounted for 58% of Canada’s population growth in this period. However, only an average of 205,762 new homes were completed per year in Canada, resulting in a ratio of 2.7 new people per new home.
A much higher ratio than in the early 1970s, when population growth and housing completions were almost equal. For instance, from 1972 to 1976, Canada added an average of 299,843 people per year, of which 121,418 were immigrants.
“Until policymakers help close the gap between supply and demand, affordable housing will remain out of reach to an ever-greater share of Canada’s population,” said Fraser Institute senior fellow Josef Filipowicz in a press release.
Several prominent economists have come out in recent months warning the government that current immigration levels are unsustainable and negatively affecting the housing crisis.
Immigrants accounted for 41% of Canada’s population growth in this period. Moreover, an average of 237,853 new homes were completed per year in Canada, resulting in a ratio of 1.3 new people per new home.
The study also shows that the housing gap varies across provinces, with Ontario having the largest gap and Quebec having the smallest gap. From 2018 to 2022, Ontario added an average of 239,915 people per year, of which 153,065 were immigrants.
Immigrants accounted for 64% of Ontario’s population growth in this period. However, only an average of 70,828 new homes were completed per year in Ontario, resulting in a ratio of 3.4 new people per new home.
On the other hand, Quebec added an average of 83,905 people per year, of which 31,065 were immigrants. This means that immigrants accounted for 37% of Quebec’s population growth in this period. Additionally, an average of 30,000 new homes were completed per year in Quebec, resulting in a ratio of 2.8 new people per new home.
