Immigrant trends point to higher home sales
November 05, 2019
A push by the federal government to raise immigration levels to record highs of 350,000 persons per year is a harbinger of higher home sales. A recent study confirmed that one out of every five home purchases in Canada is now made by recent immigrants.
New immigrants to Canada – those who have arrived within the last 10 years – represent 21 per cent of homebuyers and are expected to purchase more than 680,000 homes over the next five years if immigration levels remain near current levels, according to a survey shared by Royal LePage.
“Newcomers to Canada are vital to the health of our national real estate market,” said Phil Soper, president and CEO of Royal LePage.
The survey found 75 per cent of immigrants arrive in Canada with enough savings or cash to support a home purchase. It also found that many newcomers face challenges in securing financing for a home purchase—without employment and credit history.
In Ontario, which welcomes about 46 per cent of all immigrants annually, the rate of homeownership among recent immigrants is 32 per cent in both Toronto and Ottawa. The survey found that 84 per cent of newcomers in Ontario remain in their first city or region of residence. Currently newcomers in Ontario represent 21 per cent of all homebuyers in the province and they are projected to purchase 286,000 homes over the next five years at the current rate of migration.
Here are some other key findings from the survey:
