Canada just added a million newcomers. What does it mean for Real Estate prices?

Canada's population has grown by over one million people for the first time in history, with almost all of the increase due to international migration, according to Statistics Canada. The country's total population now stands at 39.57 million, with a growth rate of 2.7%, which could lead to the population doubling in about 26 years. The increase is mainly due to the surge in immigrants and temporary residents, which has helped Canada retain its position as the fastest-growing G7 country. However, this rise in international migration may represent additional challenges for some regions of the country related to housing, infrastructure, and transportation, and service delivery to the population, according to StatsCan. The increase in population could also have an impact on the real estate market, specifically housing prices.

While the construction industry sees Ottawa's record target of 1.5 million new Canadians within the next three years as good for business, others worry about where newcomers will make their homes given the ongoing housing crisis.

The rise in international migration will only add to the demand for housing, and this could lead to further increases in housing prices. Immigration accounts for almost 100% of Canada's labour force growth, and by 2036, immigrants are projected to be about 30% of Canada's population, up from 20.7% in 2011. The Trudeau government aims to continue increasing annual immigration targets, with a goal to grant permanent residency to 465,000 people in 2023 and increasing that goal to 500,000 people by 2025.

The plan puts an emphasis on increasing the number of immigrants who will be admitted based on their work skills or experience over the next three years. This could lead to an increase in demand for housing in regions where there are employment opportunities. In summary, the rise in Canada's population due to international migration could lead to further increases in housing prices.

The government's plan to continue increasing immigration targets based on work skills or experience could also have an impact on the demand for housing in certain regions of the country.