Canada’s population has surpassed 40 million people, according to Statistics Canada. Canada has been experiencing a steady surge in its population over the past few decades, largely fueled by immigration and natural growth. This demographic shift has led to a significant impact on various aspects of Canadian society, one of the most notable being the housing market. Among the provinces, Ontario, with its vibrant cities and strong economic opportunities, has been particularly affected by the influx of people. This research blog aims to explore the relationship between Canada’s growing population and its influence on Ontario’s housing affordability.
The federal statistics agency’s “population clock” uses modelling to estimate Canada’s population in real time. The counter hit the 40 million mark just before 3 p.m. ET on Friday, June 16, 2023.
“This is an exciting milestone for Canada,” said chief statistician Anil Arora in a media statement. “It is a strong signal that Canada remains a dynamic and welcoming country, full of potential.”
Canada has emerged as a preferred destination for immigrants seeking a better quality of life and abundant economic opportunities. Immigration policies that promote diversity and inclusion have contributed to a substantial increase in the country’s population. Additionally, Canada’s comparatively high birth rate and longer life expectancy have also contributed to population growth. These factors combined have resulted in a significant increase in the number of people moving to and settling in Canada.
Within Canada, Ontario remains the most attractive province for immigrants and interprovincial migrants. The province’s diverse economy, access to education and healthcare, and vibrant urban centers like Toronto, Ottawa, and Hamilton have drawn people from all over the world. This influx of newcomers, alongside natural population growth, has put immense pressure on the housing market in Ontario.
The rising demand for housing has triggered a surge in property prices across Ontario. In particular, the Greater Toronto Area (GTA) has witnessed an exponential increase in housing costs, making it one of the least affordable housing markets in the country. As a result, many potential homeowners, especially first-time buyers, find it increasingly challenging to enter the market.
The rental market in Ontario has also felt the impact of population growth. With increased demand for rental properties, rents have soared, making it difficult for low- and middle-income families to find affordable rental housing. The lack of affordable rental options has led to higher rates of rent burden and an increase in homelessness in some areas.
The surge in population has fueled urban sprawl, as cities expand to accommodate the growing number of residents. This development often encroaches on surrounding rural areas, leading to potential environmental issues and limiting the availability of land for affordable housing projects.
The rapid population growth in Ontario has put a strain on existing infrastructure, including transportation, healthcare, and education. The need to invest in infrastructure often competes with housing affordability initiatives, further exacerbating the housing crisis.
To address the housing affordability crisis, various levels of government have implemented measures to stabilize the market and promote affordable housing:
Governments have introduced programs and tax incentives to encourage the construction of affordable housing units. These initiatives aim to increase the supply of affordable homes and ease the pressure on housing prices.
In some regions, rent controls have been implemented to regulate rent increases, providing tenants with more stability and protection against sudden spikes in rental costs.
Government investments in public transportation and infrastructure development help in alleviating housing affordability issues by improving accessibility to more affordable areas outside major urban centers.
In response to the impact of foreign investment on the housing market, some provinces have implemented taxes on foreign buyers to curb speculative buying and stabilize property prices.
Canada’s growing population, driven by immigration and natural growth, has significantly impacted Ontario’s housing affordability. Escalating housing prices, a shortage of affordable rentals, urban sprawl, and strained infrastructure are among the many challenges brought about by the population boom. Policymakers continue to explore various solutions, including affordable housing incentives, rent controls, and infrastructure investments, to mitigate the effects and make housing more accessible for all residents. As the population continues to grow, finding sustainable solutions to address housing affordability will remain a critical task for Ontario and Canada as a whole.
