As Canada grapples with an escalating housing crisis, marked by rising rents and home prices, the debate over immigration’s role in worsening the situation intensifies. While some, including Conservative Leader Pierre Poilievre, suggest restricting immigration rates to align with housing availability, experts and government officials argue for a more subtle approach.
Poilievre, addressing a crowd in Winnipeg, highlighted the need to balance immigration numbers with the availability of housing, healthcare, and job opportunities. However, specifics of his proposed policy remain undisclosed.
Contrary to Poilievre’s stance, experts emphasize that immigration is not the sole factor straining Canada’s housing market. High interest rates, increased building costs, and bureaucratic hurdles in municipal housing construction are also significant contributors.
Conservative Leader Pierre Poilievre points to his message at a press event in Vancouver on Sept. 14, 2023. (Ethan Cairns/Canadian Press)
Canada’s immigration landscape has witnessed a substantial shift recently. The Liberal government plans to increase annual permanent resident numbers from 405,000 in 2021 to 500,000 by 2024, almost doubling the figure from 2014. Additionally, Statistics Canada reported a significant population increase driven mainly by immigration, with the country hosting a record number of non-permanent residents, including international students and temporary foreign workers.
However, David Hulchanski, a housing expert from the University of Toronto, stresses the need to distinguish between households and homes, arguing that the correlation between immigration numbers and housing isn’t straightforward. Hulchanski points out the varying household sizes across countries, affecting the actual housing needs.
Despite a seven percent decline in housing starts since 2022, Hulchanski notes that the number still suffices to accommodate incoming permanent residents. He also draws attention to other factors impacting housing starts, such as high interest rates and supply chain disruptions from the COVID-19 pandemic.
Housing Minister Sean Fraser
The focus on immigration, according to Hulchanski, overlooks the diversity within immigrant groups, their differing housing needs, and the broader systemic issues in Canada’s housing market. For example, immigrants under the family reunification program often live with relatives, reducing the immediate demand for separate housing.
Furthermore, experts like Stephen Pomeroy from McMaster University highlight the significant impact of non-permanent residents on housing affordability. The sharp increase in international students and temporary foreign workers, who primarily seek rental accommodations, has notably strained the rental market.
Housing Minister Sean Fraser and Immigration Minister Marc Miller acknowledge the need to stabilize immigration levels amidst housing pressures. While Fraser supports linking immigration numbers to housing construction, he points out that the real population growth impact comes from temporary foreign workers and international students, not permanent immigrants.
The federal government is considering caps on international students, aiming to address issues around fraud and housing challenges. The Liberal ministers expect educational institutions to ensure adequate housing for international students, with the possibility of limiting visas if these needs aren’t met.
