Demographic Shock Exacerbates Affordable Housing Crisis, National Bank Says

National Bank Reports Demographic Shock Worsening Affordable Housing Crisis

May 17, 2024 TruthUSA

The issue of affordable housing in Canada is being exacerbated by the “demographic shock” caused by mass immigration, as stated in a recent report by the National Bank of Canada.

In April alone, the working-age population (individuals aged 15 and above) grew by over 100,000, contributing to a total growth of more than 410,000 in the first four months of 2024. This data was extracted from the May 15 report titled “Hot Charts” published by National Bank Financial, Inc. (NBF), a subsidiary of the National Bank of Canada.

Historically, the growth in this age group averaged 110,000 between 2007 and 2022 and remained consistently below 160,000 each year during that timeframe. However, the first four months of 2023 saw a surge to 278,000, followed by a 47% increase in the same period of this year to 410,000.

The most significant growth in population was observed in major metropolitan areas. The Greater Toronto Area witnessed a record increase of 107,000 individuals at the beginning of the year, marking a 66% acceleration compared to the same period in 2023. Greater Montreal and Greater Vancouver also experienced substantial growth, more than doubling the levels from the previous year.

The NBF report concluded that with Ottawa planning to limit immigration from 2025 onwards, many individuals have chosen to migrate to Canada earlier. This influx could further exacerbate housing affordability issues in the coming quarters as the country heads towards another record year of population growth.

In January, Immigration Minister Marc Miller announced a reduction in new visas for international students to curb the influx of temporary residents. The cap for 2024 is expected to result in a 35% decrease in approved study permits compared to 2023, amounting to 360,000 permits.

Impacts

The federal government’s plan to welcome 500,000 immigrants annually starting in 2025 has raised concerns about its potential effects on the economy, housing, and services. A 2022 report from Immigration, Refugees and Citizenship Canada (IRCC) obtained by The Canadian Press highlighted these concerns.

Deputy Prime Minister Chrystia Freeland dismissed worries outlined in the IRCC report that increased immigration levels could impact housing affordability. She emphasized at a press conference in Toronto that immigrants play a crucial role in driving Canada’s economic growth.

Housing Minister Sean Fraser also cautioned against solely attributing Canada’s housing crisis to immigration. In response to media reports suggesting warnings from IRCC about the impacts of high immigration levels on housing affordability two years ago, Mr. Fraser stated, “No one ignored any warnings.”

Moreover, the government’s high immigration policy faced scrutiny for putting pressure on Canadian workers. On December 7, 2023, the immigration minister announced an extension of the waiver on the 20-hour-per-week limit for off-campus work by international students until April 30.

Mr. Miller acknowledged that about 646,000 foreign students in Canada, constituting 80% of the total 807,000, were working more than 20 hours per week. However, he defended the policy of lifting the cap on working hours, stating, “I don’t believe students are taking jobs away from others given the labor shortages in Canada” at the time of the announcement.

A motion from the Bloc Québécois on February 12, supported by all non-Liberal MPs, called on the Liberal government to reassess its high immigration targets.

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