More recent immigrants becoming homeowners, driving Canada’s housing market
A report by Scotiabank, a major Canadian financial institution, has found that immigrants are a major force driving the Canadian housing market.
According to the report, recent immigrants are making a faster transition from renting homes to owning homes than in the past. Homeownership rates among all immigrant groups increased between 2001 and 2006.
“The biggest increase was among those living in Canada
for less than 10 years,” said Scotiabank senior economist Adrienne Warren.
Homeownership rates among immigrants rose alongside a growth in employment rates for newcomers during the same period, the report said.
This information “may reflect a favourable skills mix, with many employed in high-growth industries such as engineering, construction and skilled trades,” said Warren.
This trend is expected to continue as immigration plays a larger part in Canada’s population growth.
“Given Canada’s aging population and low fertility rates, longer term household formation and housing needs will be largely determined by immigration,” Warren said.