'Huge increases': Economists sound alarm over impact of Canada population growth on housing market

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Population Increase News

Canada,Matthieu Arseneau,Canada’S Population

National Bank says the 2024 trend, which is seeing growth far higher than in the same period last year, is likely to worsen the housing crisis before it gets...

Toronto’s population increase from January to April was 67 per cent higher in 2024 than in 2023. In Vancouver and Montreal, population growth this year was more than double last year’s. Canada’s working population has increased dramatically in the first four months of 2024, obliterating the unprecedented numbers recorded in 2023 and threatening to raise pressure on a housing market already strained by rapid population growth.

“Those are huge increases,” said Arseneau. “We know that those cities are the main entrance for immigration. So that explains why it's higher than the national average.”. It has been a flashpoint of recent political and economic debate, particularly its impact on housing, prompting a number of policy measures this year. In January, federal Immigration Minister Marc Miller, with the intention of reducing their share of the overall population from 6.2 per cent to around five per cent.

National Bank’s economists say they now expect the working-age population to grow by three per cent in 2024, exceeding the 2.3 per cent rise in 2023. The bank’s projection sees the explosive growth in the first four months of 2024 tapering off as the year goes on, before the government’s measures to slow growth take hold. But the effects of strong population growth in 2023 and 2024 are likely to resonate beyond 2025, Arseneau says.

 

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