More recent immigrants in Canada are becoming homeowners. Here’s why

Of interest:

A rising proportion of recent immigrants are becoming homeowners, nearly catching up with the home ownership rates of their Canadian-born peers, says a new report.

In the three provinces with multiple-year data available, the home ownership rates of permanent residents measured between 2018 and 2021 all rose, according to the Statistics Canada study, which examined recent immigrants’ home ownership trajectories.

“Paired with historically low interest rates starting in 2020, the larger income gains among recent immigrants may have contributed to their increased home ownership rate in 2021, even as ownership rates declined among the Canadian-born population,” said the report released Tuesday.

In Ontario, the home ownership rate for recent immigrants in the fifth year after admission rose from 35.7 per cent in 2018 to 40.3 per cent in 2021. In B.C., it went up from 33.4 per cent to 37.5 per cent. In Nova Scotia, it soared from 34.8 per cent to 48.1 per cent.

During the period, the home ownership rates for their Canadian-born counterparts fell slightly in all three provinces. In Ontario, it dropped from 50.7 per cent to 47.8 per cent; B.C., from 44.7 per cent to 43.3 per cent; and Nova Scotia, from 51.1 per cent to 49.8 per cent.

Statistics Canada said it could be related to recent immigrants’ significant gains in wages relative to the rise among Canadian-born individuals. In Ontario, for instance, recent immigrants’ median family income went up by $14,000, from $61,000 in 2018 to $75,000 in 2021, while it crept up by $2,000 from $107,000 to $109,000 for the Canadian-born….

Source: More recent immigrants in Canada are becoming homeowners. Here’s why