Canada’s stance on immigration has long since set it apart from comparable economies. Compared to the U.S., Canada welcomes three times as many immigrants on a per capita basis. That translates to approximately 340,000 immigrants per year.
Conversely, and in keeping with historical tendencies, Canada will continue to welcome a steady flow of newcomers into the country.
Though the coronavirus pandemic has stalled Canada’s economy as a whole, immigration remains a dependable fundamental of Toronto‘s economy, effectively fueling the multifamily market and making Toronto one of the best cities for investment in Ontario. Immigration drives population gains, contributes to the workforce, and ensures a healthy tension between housing supply and demand. Moreover, migration to Canada shows no signs of slowing down.
Below, we explore Canada’s immigration policy and get into some specifics about how immigration directly supports Toronto’s real estate market, particularly the multifamily segment.
Understanding Canada’s Immigration Policy
Canada has one of the highest immigration rates per capita among developed nations. This is the case for a few reasons:
• Canada has a parliamentary system of government. This means that a federal political party holding a majority has significant control over the country’s policies and can implement new immigration policies and plans as it sees fit. This is different than the system in the U.S., where power is shared by the president, congress and senate, sometimes resulting in policy gridlock.
• Immigration is a matter of shared federal-provincial jurisdiction. Under Canada’s constitution, provinces and territories are able to authorize and manage their own immigration programs. This is in contrast to the U.S., where individual states do not have the authority to implement immigration programs.
• Canada is still accepting and approving applications for permanent residency. Despite the coronavirus pandemic, the Canadian government is still holding immigration draws and inviting potential immigrants to submit applications for permanent residency. This is per the 2020-2022 Immigration Levels Plan, announced in March, which indicates that Canada will welcome more than 1 million new permanent residents over the next three years. Moreover, more lenient immigration, visa and border measureshave been put in place in lieu of coronavirus-related disruptions.
Immigration supports the real estate market in the greater Toronto area (GTA), making it one of the best places for building wealth with real estate.
Immigration is a key contributor to the strength of Toronto’s real estate market. This has a lot to do with population growth. Toronto is the fastest-growing city in all of North America, with the population of the Toronto area forecasted to hit 8 million within the next 10 years. Surrounding regions have also seen steady population growth, with many people leaving the Toronto area for other parts of Ontario, such as Kitchener-Waterloo, London, the Niagara region and Hamilton. In particular, the population of Hamilton has grown by 23,763 since 2015. This reflects a steady growth rate of 3.1% over five years. Similarly, the population of St. Catharine’s, in the Niagara region, has increased by 12,396 since 2015.
As the population in the GTA and surrounding regions increases, so does the demand for suitable housing. A recent survey by Royal LePage indicates that new Canadians will drive up housing demand in the GTA, as the region continues to be one of the most desirable locations in Canada. Though increased demand means that housing prices are heating up across the board, lowered interest rates and increased flexibility on the mortgage lending front has improved accessibility to the GTA’s real estate market for first-time buyers.
The result will be a healthy tension between supply and demand within the residential real estate sector—particularly within the multifamily segment—in the coming years. According to CBRE’s Canadian Multifamily Mid-Year Update for 2019, Canada’s multifamily market is the most robust it has ever been, with record-low vacancy rates and increased rental rates recorded in the Toronto area.
As for the economic stall ensued by COVID-19, market experts cite that Canada will continue to be an attractive destination for immigrant families, due to factors such as public healthcare and the cheap dollar. According to a recent report by immigration law firm Green & Spiegel, 34,300 candidates have received invitations to apply for Express Entry to Canada so far in 2020, with over 3,900 receiving ITAs over the past weeks.
Immigration In The GTA And Surrounding Regions: By The Numbers
• Twenty-one percent of homes in Canada are purchased by immigrants. That’s about one-fifth of the housing market. Newcomers to the country spend approximately three years in Canada before buying homes, with 75% arriving to Canada with funds allocated for the purchase of a home.
• According to the same above report, it is estimated that newcomers will buy 680,000 homes in Canada over the next five years.
• In 2018, Niagara’s average price of a home was $413,000.
As we recuperate from the coronavirus pandemic, high rates of immigration will be something of a saving grace for the real estate market on regional and national scales. For those hoping to invest in the GTA’s, Niagara’s or Hamilton’s multifamily markets, now is as good a time as any: Annual immigration numbers are forecasted to rise. Demand for housing is growing, and new supply is underway.
MONTREAL – Two Quebec real estate brokers are facing fines and years-long suspensions for submitting bogus offers on homes to drive up prices during the COVID-19 pandemic.
Christine Girouard has been suspended for 14 years and her business partner, Jonathan Dauphinais-Fortin, has been suspended for nine years after Quebec’s authority of real estate brokerage found they used fake bids to get buyers to raise their offers.
Girouard is a well-known broker who previously starred on a Quebec reality show that follows top real estate agents in the province.
She is facing a fine of $50,000, while Dauphinais-Fortin has been fined $10,000.
The two brokers were suspended in May 2023 after La Presse published an article about their practices.
One buyer ended up paying $40,000 more than his initial offer in 2022 after Girouard and Dauphinais-Fortin concocted a second bid on the house he wanted to buy.
This report by The Canadian Press was first published Sept. 11, 2024.
MONTREAL – The Quebec Professional Association of Real Estate Brokers says Montreal-area home sales rose 9.3 per cent in August compared with the same month last year, with levels slightly higher than the historical average for this time of year.
The association says home sales in the region totalled 2,991 for the month, up from 2,737 in August 2023.
The median price for all housing types was up year-over-year, led by a six per cent increase for the price of a plex at $763,000 last month.
The median price for a single-family home rose 5.2 per cent to $590,000 and the median price for a condominium rose 4.4 per cent to $407,100.
QPAREB market analysis director Charles Brant says the strength of the Montreal resale market contrasts with declines in many other Canadian cities struggling with higher levels of household debt, lower savings and diminishing purchasing power.
Active listings for August jumped 18 per cent compared with a year earlier to 17,200, while new listings rose 1.7 per cent to 4,840.
This report by The Canadian Press was first published Sept. 6, 2024.
In the quest to find cities where renters can enjoy the best of all worlds, a recent study analyzed 24 metrics across three key categories—Housing & Economy, Quality of Life, and Community. The study ranked the 100 largest cities in Canada to determine which ones offer the most to their renters.
Here are the top 10 cities that emerged as the best for renters in 2024:
St. John’s, NL
St. John’s, Newfoundland and Labrador, stand out as the top city for renters in Canada for 2024. Known for its vibrant cultural scene, stunning natural beauty, and welcoming community, St. John’s offers an exceptional quality of life. The city boasts affordable housing, a robust economy, and low unemployment rates, making it an attractive option for those seeking a balanced and enriching living experience. Its rich history, picturesque harbour, and dynamic arts scene further enhance its appeal, ensuring that renters can enjoy both comfort and excitement in this charming coastal city.
Sherbrooke, QC
Sherbrooke, Quebec, emerges as a leading city for renters in Canada for 2024, offering a blend of affordability and quality of life. Nestled in the heart of the Eastern Townships, Sherbrooke is known for its picturesque landscapes, vibrant cultural scene, and strong community spirit. The city provides affordable rental options, low living costs, and a thriving local economy, making it an ideal destination for those seeking both comfort and economic stability. With its rich history, numerous parks, and dynamic arts and education sectors, Sherbrooke presents an inviting environment for renters looking for a well-rounded lifestyle.
Québec City, QC
Québec City, the capital of Quebec, stands out as a premier destination for renters in Canada for 2024. Known for its rich history, stunning architecture, and vibrant cultural heritage, this city offers an exceptional quality of life. Renters benefit from affordable housing, excellent public services, and a robust economy. The city’s charming streets, historic sites, and diverse culinary scene provide a unique living experience. With top-notch education institutions, numerous parks, and a strong sense of community, Québec City is an ideal choice for those seeking a dynamic and fulfilling lifestyle.
Trois-Rivières, QC
Trois-Rivières, nestled between Montreal and Quebec City, emerges as a top choice for renters in Canada. This historic city, known for its picturesque riverside views and rich cultural scene, offers an appealing blend of affordability and quality of life. Renters in Trois-Rivières enjoy reasonable housing costs, a low unemployment rate, and a vibrant community atmosphere. The city’s well-preserved historic sites, bustling arts community, and excellent educational institutions make it an attractive destination for those seeking a balanced and enriching lifestyle.
Saguenay, QC
Saguenay, located in the stunning Saguenay–Lac-Saint-Jean region of Quebec, is a prime destination for renters seeking affordable living amidst breathtaking natural beauty. Known for its picturesque fjords and vibrant cultural scene, Saguenay offers residents a high quality of life with lower housing costs compared to major urban centers. The city boasts a strong sense of community, excellent recreational opportunities, and a growing economy. For those looking to combine affordability with a rich cultural and natural environment, Saguenay stands out as an ideal choice.
Granby, QC
Granby, nestled in the heart of Quebec’s Eastern Townships, offers renters a delightful blend of small-town charm and ample opportunities. Known for its beautiful parks, vibrant cultural scene, and family-friendly environment, Granby provides an exceptional quality of life. The city’s affordable housing market and strong sense of community make it an attractive option for those seeking a peaceful yet dynamic place to live. With its renowned zoo, bustling downtown, and numerous outdoor activities, Granby is a hidden gem that caters to a diverse range of lifestyles.
Fredericton, NB
Fredericton, the capital city of New Brunswick, offers renters a harmonious blend of historical charm and modern amenities. Known for its vibrant arts scene, beautiful riverfront, and welcoming community, Fredericton provides an excellent quality of life. The city boasts affordable housing options, scenic parks, and a strong educational presence with institutions like the University of New Brunswick. Its rich cultural heritage, coupled with a thriving local economy, makes Fredericton an attractive destination for those seeking a balanced and fulfilling lifestyle.
Saint John, NB
Saint John, New Brunswick’s largest city, is a coastal gem known for its stunning waterfront and rich heritage. Nestled on the Bay of Fundy, it offers renters an affordable cost of living with a unique blend of historic architecture and modern conveniences. The city’s vibrant uptown area is bustling with shops, restaurants, and cultural attractions, while its scenic parks and outdoor spaces provide ample opportunities for recreation. Saint John’s strong sense of community and economic growth make it an inviting place for those looking to enjoy both urban and natural beauty.
Saint-Hyacinthe, QC
Saint-Hyacinthe, located in the Montérégie region of Quebec, is a vibrant city known for its strong agricultural roots and innovative spirit. Often referred to as the “Agricultural Technopolis,” it is home to numerous research centers and educational institutions. Renters in Saint-Hyacinthe benefit from a high quality of life with access to excellent local amenities, including parks, cultural events, and a thriving local food scene. The city’s affordable housing and close-knit community atmosphere make it an attractive option for those seeking a balanced and enriching lifestyle.
Lévis, QC
Lévis, located on the southern shore of the St. Lawrence River across from Quebec City, offers a unique blend of historical charm and modern conveniences. Known for its picturesque views and well-preserved heritage sites, Lévis is a city where history meets contemporary living. Residents enjoy a high quality of life with excellent public services, green spaces, and cultural activities. The city’s affordable housing options and strong sense of community make it a desirable place for renters looking for both tranquility and easy access to urban amenities.
This category looked at factors such as average rent, housing costs, rental availability, and unemployment rates. Québec stood out with 10 cities ranking at the top, demonstrating strong economic stability and affordable housing options, which are critical for renters looking for cost-effective living conditions.
Québec again led the pack in this category, with five cities in the top 10. Ontario followed closely with three cities. British Columbia excelled in walkability, with four cities achieving the highest walk scores, while Caledon topped the list for its extensive green spaces. These factors contribute significantly to the overall quality of life, making these cities attractive for renters.
Victoria, BC, emerged as the leader in this category due to its rich array of restaurants, museums, and educational institutions, offering a vibrant community life. St. John’s, NL, and Vancouver, BC, also ranked highly. Québec City, QC, and Lévis, QC, scored the highest in life satisfaction, reflecting a strong sense of community and well-being. Additionally, Saskatoon, SK, and Oshawa, ON, were noted for having residents with lower stress levels.
For a comprehensive view of the rankings and detailed interactive visuals, you can visit the full study by Point2Homes.
While no city can provide a perfect living experience for every renter, the cities highlighted in this study come remarkably close by excelling in key areas such as housing affordability, quality of life, and community engagement. These findings offer valuable insights for renters seeking the best places to live in Canada in 2024.
