As part of its plan to curb population growth, the Canadian government has set a target to reduce the number of non-permanent residents (NPRs) over the next two years. This comes after a massive surge in immigration following the pandemic. Over two million non-permanent residents are expected to leave the country by 2026 as their permits expire. While the government aims to slow down immigration, experts in economics, immigration law, and housing have raised concerns about the feasibility of this goal.
Non-Permanent Residents Facing Uncertainty
Many temporary residents, including international students and foreign workers, have faced challenges due to work permit expirations and a complex immigration system. These individuals, some of whom have spent years in Canada, are now looking for ways to stay longer. Many are opting to extend their stays by switching to visitor status, but that comes with its own set of issues, such as being unable to work legally. For some, staying in Canada is crucial because they’ve invested significantly in their education or careers and are unable to return home easily.
Despite the government’s efforts, immigration consultants believe that the reduction in NPRs will not go as smoothly as expected. Many temporary residents are likely to find ways to remain in Canada longer, potentially impacting the housing market.
The Impact on the Canadian Housing Market
The Canadian housing market is particularly sensitive to changes in population dynamics. Non-permanent residents play a significant role in driving demand for both rental properties and homes. The expected departure of millions of NPRs could lead to a decrease in housing demand, but many expect that a large portion of those individuals will remain, increasing competition in an already-tight housing market.
The real estate market in major cities like Toronto, Vancouver, and Montreal could experience higher rent prices and lower availability due to the increased pressure of more people trying to stay in the country. Housing professionals and economists are closely monitoring how these policy changes might affect the market in the coming years.
Looking Forward: What Will Happen to the Housing Market?
While the government aims to slow population growth by reducing the number of NPRs, the reality is that many of these residents will likely extend their stay by changing their status or waiting for policy changes. This could lead to more strain on the rental and housing markets, as well as more uncertainty for those trying to become permanent residents.
The Canadian housing market will likely experience a balancing act in the coming years, with changes in the demand for both rental properties and long-term housing. These shifts will depend on how successful the government’s immigration reset is, and how many non-permanent residents are able to stay in Canada.
As the government works to reduce the population of NPRs, the housing market will need to adjust accordingly. Monitoring these changes closely will be key in understanding the broader impacts on rental rates and housing supply in Canada.
References:
Canada Housing Market 
Leave a comment