Immigration behind Spiraling Housing Prices in Vancouver, Toronto & Montreal: Claims Study Report

Immigration has been a blessing for Canada and the migrants. While the former has gained, in terms of skilled workers and investors and their useful contributions made to its economy; the latter has gained, in terms of getting rewarding jobs and a chance to take their businesses to the dizzying heights of business glory, showcasing their expertise from, perhaps, the best global platform.

Immigration though, in a certain ways, has not been in the interests of some people and the country of Canada, especially when one sees its effects on the housing prices across the nation, particularly in the leading Canadian cities of Toronto, and Montreal.

A new research report buttresses the claim when it reportedly says that immigration has made a huge impact on the real estate market of the Maple Leaf Country, and this has resulted in raising the cost of housing in the Canadian cities mentioned just a short while ago.

As per the observations made in the research report, the goal of raising the permanent admission levels of immigrants to nearly 340,000 in 2020 from the preceding 270,000 in 2015 will certainly have an effect on the Metropolitan housing in the country.

An involved person, who reportedly studied about the buying and the renting patterns and compared them between the immigrants and those of natives, discovered that majority of the immigrants were more keen in purchasing a house in three major Canadian cities Vancouver, Toronto, and Montreal than the local people born in the country.

Migrants from China Holding Significant Housing Market Portion

As per the study report, immigrants from the different eastern parts of Asia, especially China, possess homes in the different costly regions of the Maple Leaf Country. Allegedly, it may be due to the capital they may have made back in their home nation.

High-income Migrants Boosting Housing Costs, Lower-income Migrants Struggling for Accommodation

The research report also says that though, without a doubt, the migrants who may have made lots of money back home and who could be earning very well in Canada also have a tendency to buy homes in costly cities, and this leads to an increase in the cost of housing.

But there is no dearth of those migrants also who are not earning well and surviving anyhow in the country, and so naturally such migrants are finding it rather difficult to pay rents, let alone buy a house in the country.

Refugees Buying Houses in Costly Areas

As per the study report, some of the refugees staying in the nation since 2011 are purchasing houses in the nation even in some of the costliest Canadian cities, including Vancouver, even as the rate of purchasing homes by refugees is equal or even higher, vis-à-vis the average rate.

Vancouver’s Housing Market Bleeding Buyers

According to the research report, Vancouver is one of the three costliest cities in the entire North America, Europe, and Asia. And since it is a highly unaffordable place, those who are anyhow purchasing homes in the city are under a great deal of stress. Such buyers have to give over 30% of their gross income to meet the housing costs. To buy a house in Toronto one has to shell out 27.6% of their gross income to meet the housing costs, and to buy a house in Montreal one has to shell out 21.8% of their gross income for the object.

Purchasing Trends as Per Ethnicity

As per the research report, in Vancouver close to 81% of the ethnic Chinese, 233,000 newcomers possess a house. Over 121,000, roughly 75% of the South Asians over 18 years, own a house in the region.

Next in line are the Filipinos and the South Koreans with 61% rate of home proprietorship in Vancouver. Latin Americans and blacks with 46% of proprietorship come next. After them, come the Arabs, who have 37% of the ownership in the region.

Ethnic Migrants Groups Finding It Difficult To Buy/Rent House

The study report adds that Koreans, West Asians (typically Iranians) and Arabs, are the three key ethnic groups who face a lot of difficulties in purchasing a house in the major Canadian cities, thanks to the very high costs of properties in such regions.