A new report from Statistics Canada reveals that recent immigrants to Canada are purchasing homes at an increasing rate, while homeownership among Canadian-born individuals is declining.
Key Findings from the Study
The study analyzed data from the Canadian Housing Statistics Program combined with immigration records for individuals aged 25 to 54 who became permanent residents between 2017 and 2021 across seven provinces: Prince Edward Island, Nova Scotia, New Brunswick, Ontario, Manitoba, Alberta, and British Columbia.
Homeownership Rates on the Rise for Immigrants
In Ontario, the homeownership rate for recent immigrants in their fifth year after admission rose from 35.7% in 2018 to 40.2% in 2021, while Canadian-born rates fell from 50.7% to 47.8%. Similarly, in British Columbia, immigrant ownership increased from 33.4% to 37.5%, compared to a slight drop from 44.7% to 43.3% for Canadian-born residents. Nova Scotia saw a significant jump from 34.8% to 48.1% for immigrants, while Canadian-born rates declined from 51.1% to 49.8%.
Economic-Class Immigrants Catching Up
Economic-class immigrants achieved homeownership rates comparable to Canadian-born individuals by their fifth year in Canada, particularly in the Maritime provinces and Manitoba. However, the gap remained larger in Ontario, Alberta, and British Columbia.
Provincial Comparisons
In Prince Edward Island, Canadian-born homeownership stood at 52.5%, compared to 49.8% for fifth-year immigrants. In Nova Scotia, the rates were 49.8% for Canadian-born and 48.1% for immigrants. New Brunswick was the only province where fifth-year immigrants outperformed Canadian-born residents, with rates of 56.6% versus 54.8%. The largest gap was in British Columbia, where immigrants had a 37.5% rate versus 43.3% for Canadian-born individuals.
First-Year Homeowners Often Had Previous Canadian Experience
The data show that over 85% of immigrants who owned a home within their first year had previously lived in Canada as non-permanent residents on work or study permits or asylum claims before becoming permanent residents.
Income and Mortgage Debt
StatCan notes that recent immigrant homebuyers generally had lower incomes but purchased more expensive homes than Canadian-born buyers. This trend may be associated with higher mortgage debt and lower retirement savings among newcomers who have bought homes.
