A new Statistics Canada study has revealed a notable shift in Canada’s housing market, with recent immigrants purchasing homes at a faster pace while homeownership rates among Canadian-born residents continue to decline.
The report examined the homeownership journey of immigrants who became permanent residents between 2017 and 2021 and found that newcomers are increasingly entering the housing market within their first few years in Canada, despite rising home prices and affordability concerns.
In Ontario, the homeownership rate among immigrants reached 40.2 per cent by their fifth year in Canada in 2021, up significantly from 35.7 per cent in 2018. During the same period, homeownership among Canadian-born residents aged 25 to 54 declined from 50.7 per cent to 47.8 per cent.
The findings suggest that many newcomers view homeownership as a key milestone in establishing themselves economically and socially in Canada. Most immigrants begin by renting accommodation, building credit histories, securing stable employment, and increasing their incomes before making the transition to homeownership.
Economic-class immigrants demonstrated the strongest performance, with ownership rates approaching those of Canadian-born Canadians within five years of arrival. In some regions, particularly the Maritime provinces and Manitoba, immigrant homeownership rates were nearly equal to those of Canadian-born residents. However, newcomers in Ontario, British Columbia, and Alberta continued to face greater challenges due to significantly higher housing costs.
The study also found that prior Canadian experience plays a major role in helping immigrants purchase homes. More than 85 per cent of immigrants who owned homes during their first year as permanent residents had previously lived in Canada as international students, temporary foreign workers, or asylum claimants. This earlier exposure allowed them to establish employment histories, credit records, and savings before obtaining permanent residency.
Homeownership trends varied among different immigration categories. Economic immigrants recorded the highest ownership rates, followed by family-sponsored immigrants, while refugees faced the greatest barriers to entering the housing market.
Differences were also observed based on immigrants’ regions of origin. In Ontario, Alberta, and British Columbia, newcomers from East Asia achieved some of the highest homeownership rates among recent immigrant groups.
Despite their success in purchasing homes, many newcomers face greater financial pressures than Canadian-born buyers. The study found that recent immigrants often purchase more expensive homes despite earning lower incomes than their Canadian-born counterparts. In British Columbia, for example, the median home purchase price for recent immigrants reached $660,000, compared with $580,000 for Canadian-born buyers.
As a result, many immigrant homeowners rely on larger mortgages and are more likely to prioritize building home equity over contributing to retirement savings. Recent immigrant buyers were significantly less likely to make contributions to Registered Retirement Savings Plans (RRSPs) during the year they purchased a home.
Statistics Canada concluded that while rising homeownership among newcomers reflects successful economic integration into Canadian society, it may also leave many immigrant families more vulnerable to fluctuations in housing markets due to higher debt levels and lower retirement savings. The findings highlight both the determination of newcomers to achieve homeownership and the financial challenges they face in pursuing the Canadian dream.