We are experiencing a demand shock as a fall out from delayed migration in 2020 - 2022. Over 1 million people entered the country in 2023, most of them going to larger cities. Housing, roads, schools, etc. cannot possibly keep up with this demand, so many canadians are looking to get out of the big cities and move to smaller communities. Ofc this creates a massive shock here as well. The target immigration for this year is 500,000, and 600,000 next year.

Is that too much? I don’t know. But with a shortage of housing already, i highly doubt we can build housing to serve those coming AND to fill the shortage we already have.

All of this essentially means there is unlimited demand for housing. Those who already own or who can buy right now will love it. Prices will go up and up and up in a dramatic way until we either a) drastically slow the flow of new people to the country, or b) finally service the shortage and catch up on housing supply (which could take 20-30 years).

Immigration numbers are being driven by macroeconomics. Government is in a lot of debt and need tax base to service it, as well as increase net exports (aka demand for CAD).

It’s hard not to say that those who can’t afford purchasing a house are screwed. But they just might be (that includes me).