Why Immigration is Fundamental to Toronto’s Real Estate Market

Immigration is a key contributor to the strength of Toronto’s real estate market. This has a lot to do with population growth. Toronto is the fastest-growing city in all of North America, with the population of the Toronto area forecasted to hit 8 million within the next 10 years

As the population in the GTA and surrounding regions increases, so does the demand for suitable housing. New Canadians will drive up housing demand in the GTA, as the region continues to be one of the most desirable locations in Canada

The result will be a healthy tension between supply and demand within the residential real estate sector—particularly within the multifamily segment—in the coming years

As for the economic stall ensued by COVID-19, market experts cite that Canada will continue to be an attractive destination for immigrant families, due to factors such as public healthcare and the cheap dollar

Immigration In The GTA And Surrounding Regions: By The Numbers

✅ 21% of homes in Canada are purchased by immigrants. That’s about one-fifth of the housing market. Newcomers to the country spend approximately three years in Canada before buying homes, with 75% arriving to Canada with funds allocated for the purchase of a home

✅ According to the same above report, it is estimated that newcomers will buy 680,000 homes in Canada over the next five years

✅ The GTA is home to 45% of Ontario’s population, welcoming 77% of the province’s newcomers

✅ In the last 20 years, Ontario has been home to about 52% of the international immigrants who have come to Canada

✅ In a move that will support Toronto’s multifamily market, 89% of high-rise units under construction are condos

✅ The homeownership rate of newcomers in the GTA is 32%

As we recuperate from the coronavirus pandemic, the Canadian government is sticking to its ambitious plans for bringing newcomers into the country, even as its borders remain essentially closed.

The government’s immigration targets for the coming years, brings in 351,000 new permanent residents in 2021 — the MOST in a century.

Annual immigration numbers are forecasted to rise. Demand for housing is growing, and new supply is underway!