Canada’s Immigration Problem: Not Enough Homes for Newcomers

▪️ اداره مهاجرت کانادا با یک مشکل جدید روبرست: کمبود خانه برای مهاجران تازه وارد.

▪️حالا که کانادا بیشتر از دیگر کشورهای مهاجرپذیر اقدام به وارد کردن مهاجر می کند، مسئولان تلاش دارند برای پاسخ به این نیاز، خانه بسازند. در سال 2022 کانادا شاهدی رکوردی در ورود مهاجر بوده است و 431 هزار مهاجر تازه وارد کشور شده، در سال گذشته هم 405 هزار مهاجر وارد شده اند و دولت در برنامه های خود قصد دارد در سال 2023 و 2024 در مجموع 900 هزار مهاجر جدید بپذیرد. به گزارش اداره آمار، جمعیت کانادا طی پنج سال گذشته تقریبا دوبرابر کشورهای عضو گروه هفت رشد داشته است.

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Hayedeh - Roozaaye Roshan

It’s Cheaper to Own than Rent in these Canadian Cities

Rental markets across Canadian cities may have soared over the past year, but when it comes down to it, renting is still, for the most part, cheaper than owning a home. But there are a few exceptions.

A new report from Zoocasa analyzed the cost of owning a condo apartment compared to renting a one-bedroom across 14 major Canadian cities and found that in three of them, it’s actually cheaper to own rather than rent. Those three cities — Winnipeg, Edmonton, and Saskatoon — are already known for having relatively affordable real estate prices, making the opportunities to own there even more accessible.
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In Winnipeg, the average rental price of a one-bedroom is $1,314. Compare this to the average monthly mortgage payment for a condo apartment of $1,152 and you’ll save 12.33% by owning.

Edmonton rental prices average $1,181 per month, which is 19.22% higher than the average monthly mortgage payment of $954 for a condo apartment. And in Saskatoon, rental prices for a one-bedroom average out to $1,071 — 11.39% higher than the average monthly mortgage payment of $949.

Every other city analyzed for the report was found to have more expensive mortgage payments than monthly rent prices. Even in Toronto where rent prices have ballooned 21% year over year, the average condo apartment, priced at $769,058, will cost you 44.81% more than the average one-bedroom rental. Neighbouring Oshawa had a similar 42.78% discrepancy, with renters paying $1,760 per month compared to an average of $2,513 in mortgage payments.

Over in Vancouver, the country’s second most expensive market for condo apartments, the difference between rent prices and mortgage payments is a much smaller 14.96%. According to the report, the average one-bedroom there will run you $2,748 while average monthly mortgage payments come out to $3,159.
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Ontario Housing Market Snapshot for September 2022

The Average Price of Homes in Ontario is Down 5.7%.

In September 2022, the average price of homes sold across Ontario was $836,300, down 5.7% from $886,748 in September 2021.

Real Estate Buyers and Sellers:

We are with you from the beginning to the end with a professional team in the field of selling and buying your dream home.
services rendered:
- Providing loans with the lowest interest rates available in the market ( First, Second, Third Mortgages)
- Free evaluation of your home Home Evaluation
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Housing Market Snapshot for September 2022

The Average Price of Homes in Canada is Down 6.6%.

In September 2022, the average price of homes sold across Canada was $640,479, down 6.6% from $686,026 in September 2021.

Real Estate Buyers and Sellers:

We are with you from the beginning to the end with a professional team in the field of selling and buying your dream home.
services rendered:
- Providing loans with the lowest interest rates available in the market ( First, Second, Third Mortgages)
- Free evaluation of your home Home Evaluation
- Finding your dream home according to location and budget
- Obtaining complete market information in order to make the right decision when buying or selling a house/condo
- Special services for:
- First Time Home Buyers
- Newcomers to Canada
- Non-residents of Canada Non-Resident
- Buying a house/condo for Investment Property investment
- Renovation services

☎️ Ways to contact us via Phone, Email:
+1 (647) 772-9502
hoizady@yahoo.com
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Canadians just saw the biggest drop in wealth on record — and the pain's not over

RBC expects $1.6 trillion to vanish under the weight of rising interest rates and falling home prices

Canadians built up a lot of wealth during the pandemic — now as interest rates rise and housing prices fall, they are watching it unravel at the fastest pace in decades.

Wealth soared during COVID, as lockdowns curbed spending, government aid flowed and most significantly, housing prices spiked into the stratosphere.

Canadians’ net worth rose by $3.8 trillion between the end of 2019 and the first quarter of 2022, helped along by a 52 per cent leap in home prices, say RBC economists Nathan Janzen and Carrie Freestone in a report this week.

Now that is reversing fast. Net wealth cratered in the second quarter, shedding $900 billion in the largest drop on record as the housing market deflates under rising interest rates and stuttering financial markets, they said.
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Market Watch Infographic October 2022

The Average Selling Price of Homes in Canada is Down 5.7%.

In October 2022, the average price of homes sold across Canada was $1,089,428, down 5.7% from $1,155,624 in October 2021.

Real Estate Buyers and Sellers:

We are with you from the beginning to the end with a professional team in the field of selling and buying your dream home.
services rendered:
- Providing loans with the lowest interest rates available in the market ( First, Second, Third Mortgages)
- Free evaluation of your home Home Evaluation
- Finding your dream home according to location and budget
- Obtaining complete market information in order to make the right decision when buying or selling a house/condo
- Special services for:
- First Time Home Buyers
- Newcomers to Canada
- Non-residents of Canada Non-Resident
- Buying a house/condo for Investment Property investment
- Renovation services

☎️ Ways to contact us via Phone, Email:
+1 (647) 772-9502
hoizady@yahoo.com
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Could the worst be over for Canada's biggest housing market?
Correction seen tapering off in Toronto

Regional real estate reports out last week showed Canada’s housing markets continue to deflate under the weight of rising interest rates.

No surprise there. The Bank of Canada has hiked rates by three and a half percentage points since March, thoroughly dousing the nation’s overheated housing market. And more hikes are expected.

Sales in most markets are now well below pre-pandemic levels and prices continue to slide. Still, RBC economist Robert Hogue noticed “interesting nuances” in some of last week’s reports.

In Toronto, Canada’s biggest housing market, there are signs that the sharp decline of recent months may be stabilizing, wrote Hogue in a recent note.
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Sales on a seasonally-adjusted basis were just about flat between September and October. And while rising rates have cooled demand there is no sign they are heating up supply, he said.

“So far there’s no indications higher rates are triggering any distressed selling wave,” said Hogue.

The decline in prices is also slowing. Hogue said the composite MLS Home Price Index fell for the seventh straight time in October from the month before. But the 1.1 percent drop is less than a third of the 3.4 percent average fall between April and August.

Torontonians might take some comfort in this. Since the March peak in this market, prices have now fallen 18 percent or $237,000, wiping out almost half of the pandemic gains.

Meanwhile in Montreal, “the downturn isn’t letting up,” said Hogue. More buyers are staying out of the market, inventories are rising and prices keep heading south. RBC estimates sales dropped 2.6 percent in October from the month before, but that too is less than the average of 7 percent in the previous three months.

Calgary is one of the few markets in Canada that has remained well above pre-pandemic levels. RBC estimates that sales here actually increased by almost 5 percent month over month in October. Prices have come down, but the 4.2 percent decline since the peak in May is a fraction of the correction seen in other markets.

Across Canada price declines appear to be slowing, said Hogue. Nonetheless, “whether activity is stabilizing, will soon stabilize or slump further, our view is the market will stay generally soft over the coming months.”

RBC does not expect Canada’s housing to hit bottom until next spring at which time the national benchmark price will have dropped 14 percent from (quarterly) peak to trough.

It’s what BMO chief economist Douglas Porter calls a “nasty side effect of inflation.”

Monday, striking education sector workers in Ontario agreed to return to work only after the provincial government offered to rescind a controversial law outlawing strikes. The same day GO Transit workers walked off the job, shutting down regional bus service across the Greater Golden Horseshoe and leaving commuters scrambling.

Seems it’s no coincidence that when inflation spikes, labour strikes aren’t far behind. Over the past 70 years, the only bout of serious labour unrest in Canada was in the mid-1970s to the mid1980s, Porter wrote in a note about the BMO chart above. That was also the last serious stretch of high inflation — up until now.

With record Canadian immigration targets, housing fears soar, but anxieties are unfounded, experts say

Builders needed to construct homes, say officials at construction plants, who welcome new immigration targets

Finding enough workers to assemble pre-built walls and floors at the Etobicoke plant where Paul Askett manages manufacturing is a grind.

He's hoping that a record wave of new Canadians expected over the next three years will help. Demand for the factory's product — installed in Ontario housing — is surging, but Askett says the assembly floor crew is usually short by about 10 percent.

"It's definitely been a hurdle. That's for sure. The pandemic has kind of changed everything for us," said Askett, the vice- president of manufacturing for Brockport Home Systems.
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This construction business is one of many sectors struggling to find workers, with about one million jobs sitting vacant across the country.

To help, Canada has just announced record immigration targets — 1.5-million new Canadians within the next three years — with plans to bring in 500,000 people in 2025. Federal officials say that will help boost the economy, but the targets have also spiked anxiety about where all these new citizens will make their homes, given the country's ongoing housing crisis.

Newcomers need more than just housing
Askett says he's encouraged by the new targets as his company often hires and trains new Canadians.

"For us, it's definitely positive news," he said. "Yeah, we look forward to any newcomers because we can coach, we can train and advance people, and hopefully give them gainful employment."
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Vancouver property tax expert Paul Sullivan, of Ryan ULC, a global business tax software, and real estate consulting firm, says Canada needs a better plan to both boost a battered economy and ensure there's enough housing and services for incoming Canadians.

"We build approximately 265,000 homes per year. And here we are talking about 500,000 immigrants coming in per year. We're undersupplied before we even talk about this immigrant influx," said Sullivan.

"It's not just housing, it's daycares, it's transit, it's hospitals. What's the plan, guys? Like, you can't just keep throwing people at it."

New immigrants won't impact home prices: expert
While some worry that a record influx of new citizens will spike house prices even higher — data experts say that fear has no solid foundation.

Murtaza Haider, director of the Urban Analytics Institute at Toronto Metropolitan University, studies the data around immigration and real estate in Canada.
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Haider says previous studies suggest the federal plan to up immigration by about 150,000 to 200,000 extra people per year (living in households of three or four), will have little impact.

"My guess is that most new immigrants will … not have cash or enough savings to go and start buying homes," he said.

"I don't expect them to exert pressure on housing prices as much, but more so on the rental demand."

Haider said it takes about two or three years for new immigrants to become active in the ownership cycle.

"So if we're bringing in half a million immigrants in 2023 and another half a million in 2024, I would assume that they would be putting pressure on ownership or owned housing in the year to 2026, 2027."

He said past studies — and the experience during lockdowns when housing markets overheated during the pandemic when immigration was frozen — prove immigration is not what spikes housing costs.

"By December 2020 we had an unprecedented increase in housing prices in Canada at a time when there was almost zero immigration because airports were closed."

The housing shortage goes back decades
Haider believes the real cause of the housing shortage is a systemic failure to ensure enough stock was constructed, a problem he says goes back decades.

"Governments have woken up to the realization that we have not built enough housing at the bottom," he said.

BuildForce Canada, an organization that studies labour force data for the construction industry, forecasts that the Canadian construction industry will need more than 1.2-million workers and need to recruit 171,850 workers by 2027. They expect to be short by 29,000 workers once baby boomers retire.

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