The Immigrant Advantage: How Newcomers Are Shaping Canada’s Real Estate Market
Canada’s real estate landscape is undergoing a significant transformation, driven in large part by the continuous influx of international migration. A comprehensive survey commissioned by Royal LePage reveals that newcomers to Canada are now a crucial force in the housing market, representing an impressive one in every five home buyers. This trend is not just a passing phenomenon; if current international migration levels are sustained, these new Canadians are projected to purchase an estimated 680,000 homes over the next five years, underscoring their vital role in the nation’s economic and social fabric.
Newcomers as a Driving Force in Canada’s Economy and Housing Supply
The impact of newcomers extends far beyond mere statistics; it is a fundamental pillar supporting Canada’s economic expansion and the overall health of its national real estate market. Phil Soper, president and CEO of Royal LePage, emphasizes this point: “In addition to supporting Canada’s economic growth, newcomers to Canada are vital to the health of our national real estate market.” He further highlights the need for strategic housing policies that can accommodate this growing demand. Soper advocates for initiatives that encourage smart and sustainable development, with a dual focus on providing affordable housing for both younger Canadians and new arrivals, while also protecting and developing green spaces in urban centers. As Canada’s economy and labor markets continue to expand, ensuring that housing supply keeps pace with this demand is not just beneficial, but absolutely crucial for sustainable growth and a healthy market.
For the purpose of this insightful study, Royal LePage meticulously defined “newcomers” as individuals who have relocated to Canada within the last decade. The respondents encompassed a diverse group, including immigrants, international students, refugees, and those on work permits, reflecting the multifaceted nature of Canada’s welcoming immigration policy. On a national scale, the average duration of time these respondents had spent in Canada at the time of the survey was four years, indicating a relatively early stage in their Canadian journey for many.
Understanding the Newcomer Home Buyer Profile and Motivations
The demographic profile of newcomers actively participating in the housing market is diverse yet often driven by shared aspirations. The study found that newcomers are predominantly families with children (accounting for 31 percent), followed by students (25 percent), and sole applicants (20 percent). This composition suggests a broad range of housing needs, from spacious family homes to smaller, more urban-friendly units.
A striking finding from the survey is the strong belief newcomers hold in real estate as a sound investment. An overwhelming 86 percent view property ownership as a good financial investment, a sentiment that aligns with the Canadian ethos of homeownership as a key wealth-building strategy. Furthermore, a significant 75 percent of newcomers arrive in Canada with existing savings earmarked to assist with property purchases, demonstrating a proactive approach to establishing roots and financial security. On average, the journey from arrival in Canada to the purchase of a first home spans approximately three years, a testament to their determination and planning.
Soper reflects on this profound motivation, stating, “It is not surprising that newcomers see a home in Canada as a good investment. Having lived abroad myself, I have seen first-hand the challenges of relocating a family to a new world. It takes courage and commitment. Newcomers are doing more than investing in Canadian real estate, they are investing in their family’s future.” This perspective highlights the emotional and aspirational dimensions behind their investment decisions, viewing a home as a foundation for their new life and legacy in Canada.
Navigating Homeownership: Challenges and Initial Settlement Patterns
Despite their strong desire to own property and their belief in its investment value, the homeownership rate among newcomers currently stands at 32 percent, according to Royal LePage. This figure is notably lower than the overall homeownership rate for all Canadians, which is 68 percent. This disparity points to potential challenges faced by newcomers, such as qualifying for mortgages, understanding local market dynamics, or accumulating sufficient down payments within their initial years.
For those newcomers who do purchase a home, their preferences mirror broader market trends but also reflect specific needs. Detached houses remain the most sought-after property type, purchased by 51 percent of newcomer homeowners. Condominiums attract 18 percent of buyers, while townhouses and semi-detached houses account for 15 percent and 13 percent respectively. These choices often depend on family size, financial capacity, and regional market availability.
Upon their initial arrival in Canada, newcomers employ various housing strategies. The majority, 64 percent, opt to rent their first home, providing flexibility as they navigate a new country and job market. A smaller but significant 15 percent manage to purchase a home immediately. Interestingly, 18 percent choose to live with family or friends at little to no cost, a communal approach that provides a supportive start and allows for savings accumulation. Nationally, a strong tendency for settlement exists, with 82 percent of respondents remaining in the region of their first residence, suggesting a preference for stability once initial roots are established.
Why Canada? The Irresistible Appeal for International Migrants
The decision to move to Canada is often rooted in a compelling vision of a better future. The most popular reason cited by respondents for choosing Canada is its reputation as a good place to live and work, mentioned by 54 percent. This encompasses factors such as political stability, robust public services, and a strong job market.
When comparing Canada to its southern neighbor, the United States, a clear preference emerges. A substantial 75 percent of newcomers do not even consider moving to the United States. The primary reasons for choosing Canada over the U.S. highlight its unique advantages: 31 percent feel more welcome as an immigrant in Canada, and 26 percent believe Canada is a safer place to live. These sentiments speak volumes about Canada’s inclusive policies and social environment.
For those who do eventually relocate to a new region within Canada, the motivations are typically job-related. A better job is cited as the most popular reason for moving by 41 percent of respondents, followed by lifestyle considerations (13 percent), and the opportunity for housing affordability that enables homeownership (12 percent). This internal migration pattern further shapes regional real estate markets, as newcomers seek economic opportunities and improved quality of life across the country.
Regional Insights: Newcomers’ Impact Across Canadian Provinces
The influence of newcomers varies significantly across Canada’s diverse provinces and regions, each offering unique opportunities and challenges.
Ontario: The Gateway Province and Economic Powerhouse
Ontario stands as the primary destination for international migration, attracting approximately 46 percent of all newcomers to Canada. This significant influx has profound implications for its housing market. The homeownership rate for newcomers residing in the Greater Toronto Area (GTA) and Ottawa both sit at 32 percent, mirroring the national newcomer average. However, the provincial homeownership rate for newcomers in Ontario is slightly lower at 29 percent, three percentage points below the national average, possibly reflecting the higher cost of living and real estate in its major urban centers.
The survey found remarkable stability in Ontario, with 84 percent of newcomers choosing to remain in their first city or region of residence. Currently, newcomers represent a substantial 21 percent of all home buyers in the province, and they are projected to purchase an impressive 286,000 homes over the next five years, assuming current migration rates persist.
Chris Slightham, president of Royal LePage Signature Realty, underscores this impact: “Ontario, and more specifically the Greater Toronto Area, has greatly benefited from international migration to Canada. Neighbourhoods across the greater region are blossoming with the continued influx of newcomers who are looking for good schools and job opportunities in thriving communities.” While downtown living appeals to some, Slightham notes that “there are still many affordable housing options for newcomers in vibrant communities outside of the downtown core,” indicating diverse market opportunities.
Newcomers in Ontario share the strong belief that homeownership is a sound financial investment (88 percent), and a significant 82 percent arrive with savings to help fund their home purchase. The demand for detached homes in the province is notably driven by the substantial number of newcomers arriving as families with children (32 percent). For those who purchase a home in Ontario, the average duration from arrival to purchase is three years.
Ottawa, in particular, presents an attractive proposition. Jason Ralph, managing partner at Royal LePage Team Realty in Ottawa, explains: “Ottawa is a very attractive destination for newcomers to Canada. Similar to Canada’s other urban centres, the city offers best-in-class healthcare, great schools and safe, friendly communities but with real estate prices roughly half of the cost of Toronto and a third the cost of Vancouver.” This relative affordability, combined with quality of life, has led to considerable upward price pressure on inventory in the $300,000 to $500,000 range, fueled by both newcomers and first-time home buyers.
In Ontario, the initial housing choices for newcomers reflect the broader national trends: 60 percent rent their first home, 16 percent purchase, and 20 percent live with family or friends at little to no cost upon arrival.
Quebec: Culture, Affordability, and Demographic Renewal
Quebec follows Ontario in attracting international migrants, drawing approximately 19 percent of newcomers seeking to live and work in Canada. Their impact on the housing market is equally significant, with newcomers representing 19 percent of all home buyers in the province. Projections indicate they will purchase 102,000 homes over the next five years at the current rate of international migration. Similar to Ontario, a high percentage of newcomers in Quebec (83 percent) choose to remain in their first region of residence, valuing stability and community.
Dominic St-Pierre, vice president and general manager for Royal LePage in the Quebec region, highlights the province’s appeal: “Demand for real estate in the province of Quebec, and the Greater Montreal Area in particular, is healthy as newcomers settle here for our excellent academic institutions, great quality of life and relative affordability.” Beyond economic contributions, newcomers play a crucial role in Quebec’s demographic landscape. St-Pierre adds, “Quebec has a significant out-migration rate and its population continues to age. In addition to enriching the province’s social fabric, newcomers provide a population boost that supports both a healthy economy and vibrant real estate market.”
British Columbia: Lifestyle, Opportunities, and Urban Magnetism
British Columbia ranks as the third most popular Canadian destination for international migration, according to the Royal LePage report. The homeownership rate for newcomers residing in Greater Vancouver stands at 32 percent, aligning closely with both the provincial and national newcomer averages.
Randy Ryalls, general manager of Royal LePage Sterling Realty, describes Vancouver’s allure: “Greater Vancouver is one of the most desirable places in the world to live and we attract newcomers who are optimistic about what the city has to offer in terms of both lifestyle and employment.” This blend of natural beauty and economic opportunity makes it a powerful magnet for new arrivals.
In British Columbia, initial housing decisions for newcomers skew towards renting, with 72 percent choosing this option. Nine percent purchase a home, while 13 percent opt to live with family or friends at little or no cost upon arrival. The demographic breakdown of newcomers to BC includes 32 percent arriving as part of a family with children, 28 percent as students, 20 percent as sole applicants, and 14 percent as couples without children. This diverse mix contributes to varied housing needs across the province.
A strong sense of belonging is evident, as 86 percent of newcomers in British Columbia remain in their first city or region of residence. Currently, newcomers constitute 15 percent of all home buyers in the province and are projected to purchase 91,000 homes over the next five years, maintaining the current rate of international migration.
Alberta: Entrepreneurial Spirit and Impressive Homeownership
Alberta attracts approximately eight percent of Canada’s international migration, distinguishing itself with a remarkably high newcomer homeownership rate of 45 percent – significantly above the national average. This reflects a strong drive for property acquisition and potentially more accessible market conditions. Newcomers in Alberta also demonstrate the strongest belief in homeownership as a good financial investment, with 90 percent affirming this view. They represent 18 percent of all home buyers in the province and are projected to purchase 76,000 homes in the region over the next five years.
Corinne Lyall, broker and owner of Royal LePage Benchmark, attributes this appeal to the province’s welcoming culture: “Alberta is particularly appealing to newcomers from all over the world, and already established Canadians who wish to migrate to the province. Calgary has a truly welcoming attitude. It is a relatively young city so the majority of the population was not born here. There is a lot of support for newcomers, along with a real sense of community and love for the area.”
Upon arriving in Canada, 19 percent of Alberta newcomers immediately own their first place of residence, the highest rate among all regions. Another 55 percent rent, and 13 percent live with family or friends at little to no cost.
Lyall further highlights Alberta’s supportive environment: “Alberta supports entrepreneurs and people who are willing to work hard. The provincial government provides tax credits for small business investment and programs to help companies succeed on an international level. The lifestyle offered throughout the province, combined with the affordability of home prices, draws people to our part of Canada.” This blend of economic opportunity, governmental support, and housing affordability makes Alberta a powerful draw.
The Prairies: Value, Affordability, and Family-Focused Living
The Prairies region, encompassing provinces like Manitoba and Saskatchewan, also attracts approximately eight percent of Canada’s international migration. Newcomers in this region boast a strong homeownership rate of 41 percent. For their initial housing choices, 62 percent rent their first home, 20 percent purchase, and 17 percent live with family or friends at little or no cost upon arrival in Canada.
Michael Froese, managing partner at Royal LePage Prime Real Estate, succinctly captures the region’s primary draw: “Affordability reigns in this region of Canada. Newcomers come to the Prairies because the region can offer a great lifestyle on an affordable budget. It’s particularly appealing for newcomers who arrive as a family or those looking to start a family.” This focus on value and family-friendly living makes the Prairies a compelling option.
Newcomers represent a significant 41 percent of all home buyers in the region and are projected to purchase 71,000 homes over the next five years at the current rate of international migration. For those who purchase a home in the Prairies, the average duration prior to purchasing is three years.
Atlantic Canada: Serenity, Space, and Accelerated Homeownership
Atlantic Canada attracts approximately five percent of Canada’s international migration, but its impact on homeownership for newcomers is disproportionately high. Newcomers living in Atlantic Canada exhibit a homeownership rate of 44 percent, an impressive 12 percentage points higher than the national average (32 percent). This makes it the second-highest percentage of all regions studied, following Alberta, highlighting a unique market dynamic.
Newcomers represent a substantial 31 percent of all home buyers in the region and are projected to purchase 43,000 homes over the next five years. Demographically, newcomers in Atlantic Canada are most likely to be a family with children (39 percent), which is eight percentage points higher than the national average, indicating a strong family-oriented migration.
Rudy Chong, owner and manager of Royal LePage Prince Edward Realty, paints a vivid picture of the region’s appeal: “Surrounded by water and beautiful landscape, Atlantic Canada is the perfect place to raise a family. Many newcomers are thrilled to discover that they can own a large home at an affordable price. Often newcomers arrive from big, metropolitan cities and are seeking the lifestyle the Maritimes offers.” The promise of space, natural beauty, and affordability provides a strong contrast to more densely populated urban centers.
The sense of establishment is also strong, with 81 percent of newcomers in Atlantic Canada remaining in their first city or region of residence. An impressive 88 percent of respondents in Atlantic Canada believe that homeownership is a good financial investment, reinforcing their commitment to the region. In terms of initial housing, 63 percent of newcomers rent their first home, 20 percent purchase, and 18 percent live with family or friends at little to no cost upon arrival in Canada. Notably, of newcomers who purchase a home in Atlantic Canada, the average duration prior to buying is just two years, the shortest among all regions studied, underscoring the region’s affordability and accessibility for homeownership.
Conclusion: Newcomers – The Future of Canadian Real Estate
The Royal LePage survey unequivocally demonstrates that newcomers are not just participants but essential drivers of the Canadian real estate market. Their aspirations for homeownership, strong belief in real estate as an investment, and diverse settlement patterns are reshaping communities and influencing housing demand across the country. From the bustling metropolises of Ontario and British Columbia to the affordable and family-friendly regions of Alberta, the Prairies, and Atlantic Canada, international migration is injecting vibrancy and resilience into the housing sector.
As Canada continues to welcome new residents, understanding their needs, motivations, and regional preferences will be paramount for policymakers, developers, and real estate professionals. The projected purchase of 680,000 homes by newcomers over the next five years highlights an immense opportunity and a responsibility to ensure that housing supply, affordability, and supportive infrastructure are in place. By recognizing and responding to the “immigrant advantage,” Canada can foster a dynamic and inclusive real estate market that benefits all its citizens, old and new.