Housing starts fall far behind immigration growth
October 28, 2023
Canada is falling farther behind the projected new homes required to meet soaring immigration levels, a new report from the Fraser Institute confirms.
Canada’s population increased by an annual average of 553,568 persons between 2018 to 2022. During that same period, just 205,762 new homes were built on average per year. The gap between those two figures has hit a 50-year high, the report cautioned.
In Ontario, the population grew by an annual average of 239,915 people between 2018 to 2022, while the annual average for housing completions over that same time period came in at just 70,828. Meanwhile, the population of British Columbia surged by an average of 86,339 over that same five-year period compared to just 39,766 housing starts on average per year.
In Alberta, annual averages were 75,665 in population growth compared to 26,782 new homes completed.
The projected new home demand is so high, in fact, that some believe it is impossible to build homes fast enough. Canada Mortgage and Housing Corporation, for instance, estimates 22 million new housing units will be needed by 2030 to achieve housing affordable—meaning the current annual construction pace would have to more than double. In all, an additional 3.5 million new housing units would need to start within the next six years.