A recent study by Statistics Canada reveals that homeownership rates among recent immigrants in Canada have risen, while Canadian-born home buyers have experienced a decline. The study tracked home-buying patterns in seven provinces from 2017 to 2021.
Key Findings on Homeownership Trends
In Ontario, the homeownership rate among immigrants who had been in Canada for five years increased from 35.7% in 2018 to 40.2% in 2021. During the same period, the rate for Canadian-born individuals dropped from 50.7% to 47.8%.
Despite having lower incomes, newcomers purchased more expensive homes by pooling family resources and taking on higher mortgage debt. The homeownership gap between recent immigrants and Canadian-born individuals was larger in Ontario, Alberta, and British Columbia, while Maritime provinces and Manitoba showed similar rates for both groups.
Income Growth Among Immigrants
Recent immigrants in Ontario saw their median family income rise from $61,000 in 2018 to $75,000 in 2021, a $14,000 increase. In contrast, Canadian-born families experienced a modest $2,000 increase, from $107,000 to $109,000.
“Paired with historically low interest rates starting in 2020, the larger income gains among recent immigrants may have contributed to their increased homeownership rate in 2021, even as ownership rates declined among the Canadian-born population,” the study noted.
Government Policies and Refugee Homeownership
The study highlighted government policies such as capital gains tax exemptions on primary residences and mortgage loan guarantees, which help immigrant families build wealth and improve mental health. For refugees, homeownership rates after five years were at least 1 in 10 in several provinces, with Ontario reaching nearly 1 in 5.
“Homeownership was more common for recent immigrants who had been in Canada longer,” the study said. “This is consistent with the idea that owning a home is typically preceded by a period of income growth, credit building and wealth accumulation in the host country.”
Long-Term Trends and Future Demand
The declining trend in homeownership among native-born Canadians dates back to 2011, likely tied to rising housing costs outpacing wages. With Canada seeing historic immigration levels between 2022 and 2024, researchers expect housing demand to increase as newcomers settle.
