Immigration Is The Reason For Canadas Growing Housing Market

06 Sep 2013

Canadian housing market is growing stronger each day, and National Bank Financial (NBF) believes immigration may be the answer to keep the growth steady.

Matthieu Arseneau, NBF’s senior economist argued in a report that Canada’s high level of net migration in the age group of 20-44 is underpinning a high rate of formation of new households in the country, and that has been driving housing demand. He noted that in 2012, Canada’s overall population growth in that age group was 1.1%, compared with a decline of 0.3% in the rest of the developed world. This growth was entirely driven by immigration; without the influx of new citizens, Canada’s population in this critical household-forming age group would have shrunk last year.

Mr. Arseneau wrote in the report that there is reason to believe that the reason for Canada being a favorite choice for foreign workers is because of the resilience of Canadian employment in the recent economic downturn. He insisted that in 2012, Canada’s employment rate for foreign-born residents was among the highest of the advanced economies.

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