A newly released report commissioned by Royal LePage gives a glimpse into the impact immigration is having on the Canadian real estate market.
According to the report, which was derived from a survey of 1,500 “newcomers” this past August, “Canadian newcomers” are currently behind 21 per cent of all home purchases in the country, and are projected to buy 680,000 homes over the next five years if migration rates stay the same.
The national rate of homeownership among new Canadians is 32 per cent compared to 68 per cent overall.
In the Prairies, though, those rates are even higher. The report says 41 per cent of new Canadians in the Prairies (Saskatchewan and Manitoba) own their own home and that new Canadians also represent 41 per cent of all homebuyers in the region.
The report predicts new Canadians will make 71,000 home purchases in the Prairies over the next five years.
“It’s really remarkable,” said Royal LePage Vidorra Broker Norm Fisher in Saskatoon on Wednesday. “Homes are more affordable here. Areas like Toronto and Vancouver are very attractive to newcomers but there it is considerably more expensive so it takes people more time to save a down payment.”
Fisher said the Canadian Real Estate Association estimates the average home purchase generates $60,000 in economic spinoff.
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“They not only buy a home but they renovate it, and repair, they buy furniture and all of that money comes back into the economy to the benefit of those who already live here.”
The survey defined “newcomers” as people who have moved to Canada in the past 10 years, including immigrants, students, refugees and those in the country with work permits.
Other data collected showed that 71 per cent of new Canadians who arrived in the Prairies after moving to Canada still live in the same region they first moved to.
Nationwide, the survey found 82 per cent of new Canadians choose to stay in the city they first moved to, and around 30 per cent arrive as part of a family with children.
“The combined demand for affordable housing among younger Canadians and new Canadians can be met through housing policies that encourage smart and sustainable development,” said Royal LePage president and CEO Phil Soper.
“Canada’s economy and labour markets are expanding, and it is crucial that housing supply keeps pace.”
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