New immigrants make a significant contribution to the Canadian real estate market.
According to a Royal LePage survey, every fifth house in Canada is bought by newcomers, who spend about three years in Canada before buying a home. 75% of them come to the country with money, which they have saved to purchase a home. The majority (64%) of immigrants rent their first home immediately upon arrival, and only 15% prefer buying a house or apartment right from the start.
The survey is based on interviews with about 1,500 people who arrived in Canada in the last 10 years. Newcomers account for about 21% of all homebuyers in Canada. This suggests that new immigrants make a significant contribution to the Canadian real estate market.
According to Royal LePage, if the current level of international migration continues, newcomers are expected to buy 680,000 homes in Canada in the next five years.
Royal LePage defines newcomers as people who have lived in Canada for 10 years or less. They include immigrants, students, refugees, and temporary foreign workers. According to the company, 31% of new arrivals are family members, 25% are students, and 20% are single. The vast majority of newcomers are immigrants.
The number of new arrivals in Canada range from two to three million people, while the total population of Canada is approximately 37 million. About 300,000 people come to Canada as immigrants every year. The survey showed that 86% of newcomers consider real estate a good investment. 51% of them buy detached houses, 18% prefer condominiums, 15% buy townhouses, and 13% purchase semi-detached houses.
The data clearly shows that Canada attracts people with money. Toronto, Vancouver, and Montreal are the three main areas where newcomers buy their homes. According to Phil Soper, president of Royal LePage, in the past, immigrants boarded a ship not knowing where they were going, and with the Internet, people understand the economy, housing and labour markets in the regions where they are going. He also added that if they choose a relatively expensive part of the country such as Vancouver, they probably have the means to live there.
According to the survey, 75% of newcomers also do not plan to move to the United States.