A report released today by a major Canadian bank says growth in the 25-34 age group and increases in immigration levels will likely push housing prices up over the next decade.
The analysis, by CIBC World Market’s deputy chief economist Benjamin Tal, points to the propensity of Canadian immigrants to buy a home to support its conclusion.
Statistics show that nearly 20 percent of Canadian immigrants who have been in the country for three years or less are home owners, while home ownership rates among immigrants who have been in Canada for ten years or longer is over 70 percent, a figure higher than that of natural-born Canadian citizens.
The report says that owing to recent shifts in immigration targets by the federal government, immigration levels, already at historic highs in absolute terms, are expected to increase over the next few years, which will increase demand for housing.
A pdf of the report can be found online here.
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