Immigration plays a small role in Canada's housing and rent price increases, federal study finds

 

 

Immigration has played a small role in Canada's housing and rent price increases, a federal study finds. A Canadian government study found that immigration has made the cost of buying and renting homes in cities across the country slightly higher over the past 20 years. But the impact is not huge and is just one of many reasons why housing is more expensive, the study says. Other factors also play a big role in the increase in housing and rent prices.

The IRCC report says new immigrants accounted for about 11 per cent of the increase in average housing prices and rents between 2006 and 2021 in all municipalities with more than 1,000 residents. The effect was most pronounced in the 53 municipalities with more than 100,000 residents. The report says that immigrants increased the average housing price by 21 per cent and rent by 13 per cent. The link between immigration and housing price increases was most pronounced in two places: British Columbia and Ontario. Overall, immigration had a small impact on housing construction, but it was not a major factor, the report said. The impact varies depending on how many homes are available and the local economy in each area, the report said.