Rents Are Soaring in Canada as Surge of People Goes Undercounted

Good article and analysis.

Emblemic of the “undercounting” is that the Immigration Levels Plan does not include temporary residents (workers and students), an oversight that many are noticing given the rapid rise in their number over the past 20 years.

Housing availability and affordability is the most obvious Achilles Heel of the government’s approach but there healthcare and infrastructure are also significant:

Canada’s explosive population growth from immigration is causing rents to surge in its biggest cities. And there’s another problem: The country isn’t even properly counting the number of people who need homes.

Prime Minister Justin Trudeau’s government plans to welcome 465,000 new permanent residents this year, and increase the annual target to half a million by 2025. But those often-cited numbers understate the pressure on the country’s limited supply of housing —because they don’t include a wave of foreign students, temporary workers and others with non-permanent visas.

The country actually had close to 1 million international arrivals last year, according to an analysis by Canadian Imperial Bank of Commerce that’s based on other data, including visas. It will probably accept a similar number this year, said Benjamin Tal, the bank’s deputy chief economist.

Apartment Rents Are Soaring in Canada’s Cities

Rent increases for two-bedroom apartments, year-over-year

As a result, Canada is experiencing its fastest population growth since the 1970s, and apartments have become extremely hard to find. The vacancy rate on rental buildings is below 2%, the lowest since 2001. In Vancouver, it’s less than 1%. The situation is made worse by rising interest rates that have made buying a home unaffordable for many people, pushing them into the market for rental properties.

Source: Rents Are Soaring in Canada as Surge of People Goes Undercounted

About Andrew
Andrew blogs and tweets public policy issues, particularly the relationship between the political and bureaucratic levels, citizenship and multiculturalism. His latest book, Policy Arrogance or Innocent Bias, recounts his experience as a senior public servant in this area.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.

%d bloggers like this: