By: Adam Choghri
Statistics Canada reports that the population grew by 1,050,110 between January 1, 2022, to January 1, 2023. It is now estimated that the Canadian population is 39,566,248. Canada hasn’t seen a growth rate like this since 1957 when the annual growth rate was +3.3% compared to today’s, +2.7%. Canada is in the top 20 in the world for population growth.
95.5% of the population growth came from immigration. In 2022, 437,180 immigrants were allowed to enter Canada. As well, Canada has seen an increase in non-permanent residents. The increase of non-permanent residents was 607,782. Both of the rates have broken records seen by Canada.
Can the population growth Canada is facing affect the housing market?
With the ever-growing population, it can affect the housing market in a good and bad way. Shereen Badawi is a realtor with Remax Canada. She says, “An increase in population can be beneficial to the housing market in several ways. With more people moving into an area, there is an increased demand for housing, which can lead to higher prices for both buying and renting.”
Badawi says population growth can attract a lot of opportunities for investments within the housing markets. “A growing population can attract more investment in the housing market, including new construction projects and renovations of existing properties.” Badawi continues to say that it can also provide additional options for buyers and those who are renting out their properties which can help increase the supply of available housing.
Although it can bring great opportunities and help the housing market, it can also bring challenges. Badawi says that the population increases the demand for houses. “When there is a sudden increase in population, the demand for housing also rises, which can lead to a surge in housing prices. This can make it difficult for many people, particularly those with low or moderate incomes, to afford housing.” She says that this could lead to a shortage of affordable housing. Adding that it can put a strain on the housing market which affects infrastructure, limited supplies, and gentrification.
Badawi says the same for non-permanent residents. She says that it can help boost the housing market which can help increase rental property demands. “Non-permanent residents can provide a boost to the housing market by increasing demand for rental properties. Many non-permanent residents come to Canada to study, work, or visit, and they may require housing for a short period of time. This can create opportunities for landlords to rent out properties and generate rental income.” Badawi says that the increase in non-permanent residents can help boost the economy by creating jobs. From that she says, can help investments in the housing market for an increased supply of available housing.
“However there are also potential negative impacts of an increase in non-permanent residents on the housing market. For example, if there is a sudden influx of non-permanent residents, this can put additional strain on the housing market and lead to a shortage of available housing. This can drive up housing prices and make it more difficult for local residents to find affordable housing.”
Badawi says, “In addition, non-permanent residents may not be as invested in the local community as permanent residents, and may be more likely to move out of the area once their period of study, work, or visit is over. This can create instability in the housing market and lead to a less cohesive community.”
Canada reported their annual trend in the fourth quarter saying that it noticed a growth of +0.7% in its population from October 1 to December 31, 2022. It is the same as it was 65 years ago when they saw a growth of +0.7% in their population. The immigrant population accounted as well for the growth. They account for 97.7% of the population in the fourth quarter. For the non-permanent residents, their growth grew to +196,262.
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