Study finds more newcomers considering moving to escape housing costs

Newcomers are increasingly likely to leave their current province, or Canada as a whole, in search of more affordable housing, according to a recent survey by the Angus Reid Institute, a non-profit research foundation.

In recent years, the cost of housing in Canada has reached levels that make it difficult or unaffordable for many people to access housing. As a result, nearly 40% of newcomers to Canada over the past decade said they would consider moving.

The latest data from the Canadian Real Estate Association (CREA) shows that the average price of a home in Canada is $699,117. While that’s actually down 4% from the previous year, the Angus Reid study found that the average cost of rent year-over-year has actually increased by more than 17%.

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This is particularly relevant for newcomers since, according to Statistics Canada’s 2021 census data, 59% of all recent newcomers to Canada rent their homes.

Rents are particularly high in Vancouver and Toronto, as well as nearby cities. These cities consistently rank among the top ten most expensive places in the country to rent, according to the latest report from Rentals.ca.

The average rent for a one-bedroom apartment in Vancouver was $2,671 per month in June 2024. Toronto wasn’t far behind at $2,479.

Angus Reid’s study finds that many newcomers to Canada are highly skilled and choose to settle in these urban centres, but they now face uncertainty about whether to stay or go, whether to another province or leave Canada for another country.

The data also shows that a higher percentage of Canadians and newcomers in Ontario and British Columbia are considering moving to another province or even another country because of the cost of housing. Respondents in these two provinces said they were most likely to leave Canada and settle abroad.

More generally, 42% of respondents nationally would consider moving to another country, whether to the United States (15%) or elsewhere (27%). The study also found that immigrants who had lived in Canada for more than ten years were more likely to consider leaving the country (36%) in search of affordable housing.

For those who would choose to stay in Canada, Alberta emerged as the preferred province for relocation, with 18%. It is worth noting that it was the most popular destination for Canadians aged 65 and over, as well as newcomers. It was also the most popular province for interprovincial migration in 2022/2023.

Atlantic Canada has also become a popular relocation destination, particularly among Ontarians considering a move (14%).

Atlantic Canada has experienced a population boom since the COVID-19 pandemic due to a perceived lower cost of living. By the end of 2021, Nova Scotia’s population had passed the 1 million mark and continued to grow. However, rapid population growth has significantly increased the cost of housing in the region, and a quarter of survey respondents in Halifax are now considering leaving the province.

The study also asked newcomers and Canadians if they had other reasons for moving. For most, quality of life was a determining factor (8%), followed by cost of living and quality of health care (4% each). A smaller percentage wanted to be closer to family (3%).

What does this mean for immigration to Canada?

Canada consistently ranks among the most popular destinations for newcomers from around the world, but several 2023 opinion polls indicate that some Canadians are concerned about the impact of high immigration levels on affordability.

The Government of Canada is targeting large numbers of newcomers because they are seen as essential to sustaining the national economy and keeping the workforce afloat as the current population ages and retires.

However, Canada’s rapid population growth has strained social systems, including health care, and created high demand for limited housing, driving up prices. As a result, Reid’s study suggested that Canada could lose its reputation as a welcoming country for newcomers.

In recent months, Immigration, Refugees and Citizenship Canada (IRCC) has taken steps to stabilize Canada’s population. For example, it has limited the number of international student applications it will consider and will now include “soft targets” for temporary residents in the upcoming 2025–27 Immigration Levels Plan.

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