Canadian real estate franchiser, Royal LePage, released a survey recently that studied how newcomers and immigrants contribute to real estate demand in Canada. It turns out that B.C. newcomers own one in five homes in the province and 21 percent of all homeowners in Canada are immigrants. Our very own province, British Columbia is the third most popular Canadian destination for international migration. They don’t say “Beautiful British Columbia” on license plates for nothing.
For this study, Royal LePage defined newcomers as those who have moved to Canada within the last ten years. Newcomers include immigrants, students, refugees and those who are in Canada for work. Canada has actually accepted more immigrants in 2018 than it has in the last 100 years.
“Greater Vancouver is one of the most desirable places in the world to live and we attract newcomers who are optimistic about what the city has to offer in terms of both lifestyle and employment,” said Randy Ryalls, the general manager of Royal LePage Sterling Realty, in a press release.
In fact, the number of newcomers residing in Greater Vancouver who own a home is 32 percent, make this number similar to both the provincial and national average.
In B.C., 72 percent of newcomers rent their first home while nine percent purchase their first home.
Another 13 percent live with family or friends when they arrive in Canada to save money, according to the study.
It is estimated that newly arrived immigrants are projected to purchase 91,000 homes over the next five years in our province at the current rate of international migration.
In fact, if the current international migration level is maintained, then nationally, immigrants are expected to purchase 680,000 homes over the next five years.
“In addition to supporting Canada’s economic growth, newcomers to Canada are vital to the health of our national real estate market,” said Phil Soper, president and CEO, Royal LePage, in a press release.
“The combined demand for affordable housing among younger Canadians and new Canadians can be met through housing policies that encourage smart and sustainable development, with a focus on protecting and developing green spaces in our urban centres. Canada’s economy and labour markets are expanding and it is crucial that housing supply keeps pace,” said Soper.