Immigration & Housing Supply Part 2 of 2 - Striking a Balance
Part 2: Striking a Balance Amidst the Housing Crisis and Immigration Levels
As we explore the link between Canada's housing crisis and rising immigration, we uncover intricate layers shaping the nation's path. Beyond the surface, various factors contribute to these urgent issues. Our exploration delves into the complex dynamics of immigrants and housing challenges, illuminates the government's stance, and seeks equilibrium in these trying times.
Immigrants and the Housing Dilemma
As some attribute the housing crisis to newcomers, a more nuanced perspective emerges. The Royal Bank of Canada (RBC) report dismantles the simplistic narrative, revealing that the housing shortage predominantly stems from increased construction costs. These costs have surged by a staggering 51% since the start of the pandemic in 2020. Labour shortages, supply chain disruptions, and higher input costs have contributed to this intricate challenge. Moreover, the scarcity of skilled workers and the rise of construction job vacancies further exacerbate the situation.
Government's Immigration Strategy: A Dual Perspective
Remarkably, the Canadian government perceives immigration as part of the solution rather than the primary cause of the housing crisis. Pioneering an ambitious goal of admitting up to 500,000 permanent residents annually by 2025, the government aims to harness newcomers to bridge labour gaps, including those within the construction sector.
However, as we navigate this complex path, concerns arise. Economists, as illuminated by a TD report, caution that the rapid influx of immigrants, coupled with non-permanent residents, could potentially strain the housing market further. A divergence of opinion emerges, with some urging an internal focus on closing labour force gaps through innovative measures like affordable daycare spaces and streamlined accreditation processes for newcomers.
Striking a Balance: The Imperative Quest
As Canada wrestles with this intricate challenge, a harmonious equilibrium between immigration and housing sustainability becomes paramount. Both government officials and economists concur that a comprehensive approach is the linchpin. Fostering a balance between the influx of skilled newcomers and internal workforce development emerges as a potential solution, even though immediate fixes remain elusive.
__________________________
Malahat Valuation Group specializes in business valuation and real estate appraisals to owners of privately owned companies and their professional advisors.
When owners need to leverage, sell or reorganize their assets, we answer the age-old question, "What is it worth?".
We provide our clients and their advisors peace of mind by preparing professional valuations that stand up to scrutiny from lenders, the Courts, and the Canada Revenue Agency.
Malahat Valuation Group Inc.
(250) 929-2929
