Despite Housing Crisis, Canadian Fed Sticks to Immigration Plans

Updated on: 2023-08-21 - 2 mins read
Canada Housing CrisisCanadian GovernmentCanada Immigration Plans Canada Population GrowthHousing Affordability
"Despite Housing Crisis, Canadian Fed Sticks to Immigration Plans"

Key Points:

  • Canada's housing supply struggles to match rapid population growth, raising housing crisis concerns.
  • Experts emphasize the link between housing affordability and inability to meet housing demand.
  • Despite warnings, the Canadian government stands firm on immigration plans for economic and housing needs.
  • Rising immigration targets and temporary residents contribute to the population surge, impacting housing.
  • Housing crisis involves factors like red tape, insufficient rentals, requiring innovative solutions.
  • Striking a balance between population growth and housing affordability is challenging, critical for policy alignment.


Canada's housing supply is struggling to keep up with the rapid pace of population growth. Academics, commercial banks, and policy thinkers have raised concerns about the worsening housing crisis fueled by the influx of immigrants.

Impact on Housing Affordability

Experts argue that the inability to match the housing supply with the increasing population is the root cause of Canada's housing affordability challenge. Murtaza Haider, a professor of data science and real estate management, emphasizes the urgent need for more housing to accommodate the growing population.

Warnings from Academia and Banks

A TD report highlights the potential consequences of continuing with a high-growth immigration strategy. It suggests that the housing shortfall could widen by half a million units within two years if the current immigration pace persists.

The Government's Stance on Immigration

Despite warnings, the Canadian government remains committed to its immigration plans. Officials assert that high immigration is necessary to support the economy and address the housing shortage. Immigration Minister Marc Miller argues that reducing immigration numbers could strain public finances due to an aging population.

Aging Population and Fertility Challenges

Canada faces an aging population, leading to concerns about public finances and healthcare demands. The country's working population is aging, and the fertility rate has hit a record low. Skilled-based immigration has been viewed as a solution to address the economic consequences of an aging population.

Rising Immigration Targets

Canada's immigration targets have been steadily increasing. The federal government aims to welcome 500,000 immigrants annually by 2025, a significant jump from under 300,000 in 2015. However, the surge in population isn't solely driven by higher immigration targets.

Impact of Temporary Residents

Canada is also witnessing a rise in temporary residents, including international students and temporary foreign workers. This influx contributes to the overall population growth. In 2022, the country's population increased by over a million people, with a substantial number being non-permanent residents.

Concerns and Scrutiny

The influx of temporary residents and immigrants has raised concerns about potential fraud and the need for stricter scrutiny. The government acknowledges the need to address fraud issues while maintaining a balance between immigration and security.

Housing Affordability Crisis

Canada's housing crisis is primarily attributed to factors beyond immigration, such as red tape and lack of rental constructions. Experts stress that addressing housing challenges requires bold solutions.

Population Growth and Housing Prices

Population growth has a direct impact on housing prices. For every one percent increase in population, housing prices are estimated to rise by three percent. This connection highlights the potential exacerbation of the housing crisis due to strong population growth.

Navigating the Relationship

The federal government faces the challenge of balancing population growth with housing affordability. Experts suggest that addressing housing challenges is crucial to maintaining public support for immigration policies.

Building the Future

Despite the concerns, immigration remains part of the solution to the housing crunch. Construction, a labor-intensive industry, benefits from the skilled workers brought in through immigration. Changes to the express entry system prioritize tradespeople for permanent residency.

Aligning Housing and Immigration Policies

The government acknowledges the need to align housing and immigration policies. Officials recognize the importance of building homes and communities where people are moving to.

Official Link:

CBC Canada: Feds stick by immigration plan despite housing supply concerns