m city condos location.Immigration aggravates the housing shortage. The Canadian government hopes to accept more immigrants to ease the growing labor shortage caused by the COVID-19 epidemic and boost the economy. However, the increase in immigration will further aggravate the housing tension, putting the Canadian government in a dilemma.Please Visit: m city condos location to Get Your VVIP Registration Today!
The Canadian government is working hard to achieve its goal of accepting 401000 immigrants this year and plans to accept another 411000 next year, Reuters reported on the 9th with a source familiar with the matter.
Canada’s fertility rate remains low, falling to an all-time low last year. Affected by the epidemic, many elderly people retire early, and the labor gap urgently needs to be filled by more immigrants. Due to labor shortage, the Canadian Association of Manufacturers and exporters has asked the government to double its target for accepting economic immigrants by 2030.
Immigration Minister Sean Fraser told Reuters: “Canada needs immigrants to create jobs and boost economic recovery.” 1/3 of Canada’s shops are run by immigrants, and the increase in immigration will help ease the labor shortage. ”
However, due to chronically low interest rates, insufficient housing supply and increased immigration, Canadian housing tensions have intensified and house prices have soared, which in turn has pushed up inflation. The consumer price index rose 4.7% in October from a year earlier, an 18-year high.
Stephen Brown, senior economist in charge of Canada at Capital International Macroeconomic Consulting, said that Canada’s construction and development needs more immigrants to fill the labor gap, but the increase in immigration will push up house prices, “this is a problem.”
Immigrants are more likely to buy homes in big cities such as Toronto and Vancouver, where the price of a standard home is now more than C $1.12 million (US $880000), according to Statistics Canada. the price of a standard home nationwide is about C $763000 (US $600000). In the United States, the price of a standard home is only $313000, according to Zilo Real Estate Database.
Benchmark Canadian house prices have risen 77.2 per cent since Justin Trudeau became prime minister in 2015. Under pressure, the Trudeau government plans to submit a housing security plan to parliament, including an injection of C $4 billion (US $3.2 billion) into housing funds in several major cities, with a view to adding 100000 “middle-class” homes by 2024 or 2025.
Economists believe that the government’s above plan will help to “cool” house prices, but it will take some time to put it into place. In addition, some price control measures may further stimulate demand for housing. Some analysts believe Canadian house prices will still rise 5 per cent next year.
Real estate agent Jody Gilmore says Canadians are scrambling to buy homes right now, otherwise they will have to face the expected rise in interest rates and immigrants to join the competition next year.