A "Sold over asking" sign is on display on a house for sale in Toronto's housing market in Toronto, Ontario, Canada, October 21, 2016. REUTERS/Hyungwon Kang/File PhotoOTTAWA, Dec 9 - Canada hopes more immigration can boost economic growth and allay a worsening post-pandemic labor shortage, but new migrants could pour gasoline on that red-hot housing market that the central bank has warned was stoked by "a sudden influx of investors.
"It is a conundrum," said Stephen Brown, senior Canada economist at Capital Economics, said of the effect of immigration on housing costs.Still, ongoing construction and the need for labor justify more immigration. Canada has reached a point where the labor force will "flatline" without immigration, Brown said.
According to Statistics Canada, immigrants tend to buy in large urban centers, like greater Toronto and Vancouver, where home prices are now above C$1.12 million. Nationwide, a typical home now costs C$762,500 , realtor data shows. The value of a typical home in the United States is $312,728, according to Zillow.