Welcome to the Ansari Immigration blog, where we explore the dynamic landscape of Canadian immigration. In this post, we dive into the fascinating topic of housing shortfalls, fueled in part by the rapid pace of immigration to Canada.
Rapid Immigration Fuels Housing Shortfalls
According to a recent report from TD Economics, if immigration continues at its present pace, Canada's housing shortfall could widen by an additional 500,000 units within just two years. Economists Beata Caranci, James Orlando, and Rishi Sondhi, who authored the report, highlighted that Canada's population grew by 1.2 million over the past year—over double the pace of population growth compared to 2019 and years prior.
A Question of Balance
The federal government aims to welcome another 500,000 people per year by 2025, hoping to address labour shortages and counterbalance the country's aging demographic. However, the TD report questions whether this sudden population increase has occurred too swiftly. Notably, even before the influx of newcomers, Canada's future housing stock was already projected to become less affordable across the country.
The National Bank of Canada echoed these sentiments in its own report, calling out the government's decision to open the "immigration floodgates" during the most aggressive monetary tightening cycle in a generation. This action has resulted in a record imbalance between housing supply and demand.
The Complex Picture of Housing Issues
Yet, it's critical to understand the complexity of this situation. As Mikal Skuterud, a professor of economics at the University of Waterloo, points out, issues of housing affordability and limited supply would exist regardless of the current pace of immigration. That said, immigration does likely exacerbate these issues.
Skuterud stresses that Canadians should not solely focus on the housing market, but on the economy as a whole. After all, the prosperity of Canada is dependent not just on residential capital, but also on business capital and social infrastructure, like public transportation systems, healthcare systems, and schools.
The Role of Temporary Foreign Workers (TFWs)
Another point of discussion is Canada's increasing reliance on temporary foreign workers (TFWs), including foreign students, to fill in labour gaps at low wages. While this approach may help in addressing immediate labour shortages, Skuterud argues it does little to boost GDP per capita or improve the living standards in the population.
Not Closing the Doors, but Building More Homes
Despite these housing concerns, shutting the doors to newcomers is not the solution, according to New Housing and Infrastructure Minister Sean Fraser. Instead, the emphasis should be on building more homes to accommodate the higher immigration flows.
Where Does Ansari Immigration Fit In?
At Ansari Immigration, we understand that navigating the world of immigration can be complex. Our team is here to help you understand these dynamics and provide advice on immigration routes that can potentially minimize the impact on Canada's housing shortages.
We offer various services, from assisting with student visas and study permits, healthcare, workers' immigration to Canada, and in-land sponsorships. Be sure to check out our other blogs on these and more topics related to Canadian immigration.
The issues surrounding housing and immigration are complex, and it's important to have informed discussions about them. Stay informed and make a difference in the world of immigration. Reach out to Ansari Immigration today, and let's navigate the exciting journey of immigration together!