Immigrants help power property market, survey finds
TORONTO Newcomers to Canada account for more than a fifth of the housing market, helping boost real estate in Ontario, Quebec and British Columbia, says a new survey.
Immigrants buy 21 per cent of houses and may purchase 680,000 homes during the next five years if migration levels are maintained, the poll commissioned by Royal Lepage shows.
“In addition to supporting Canada’s economic growth, newcomers to Canada are vital to the health of our national real estate market,” Phil Soper, Royal Lepage president and CEO, said in a statement. “Newcomers are doing more than investing in Canadian real estate, they are investing in their family’s future.”
The survey lands as the country’s housing markets rebound from the imposition of tighter mortgage rules over the past two years that were brought in to limit speculation and soaring prices in markets such as Vancouver and Toronto.
Prices have fallen in Vancouver and increases slowed in Toronto, but their markets are gathering steam again. Buying activity rose another 0.6 per cent in September to 512,000 units (seasonally adjusted and annualized) — the highest level in 21 months and 6.6 per cent above the 10-year average, according to the Canadian Real Estate Association.
The poll of 1,500 people who arrived in Canada within the past 10 years found more than half of newcomers — 54 per cent — chose Canada because it’s a good place to live and work, while three-quarters said they didn’t consider moving to the U.S., with 31 per cent citing a better reception for immigrants in Canada and 26 per cent saying it was safer.
Almost half — 46 per cent — chose Ontario, helping power the province’s property market especially in Toronto and Ottawa, according to the survey.