A recent Statistics Canada study reveals a hard truth: 1 in 6 newcomers are stuck renting, and finding affordable housing is becoming increasingly difficult for those who’ve recently arrived compared to those who’ve settled in longer.
Defining unaffordable housing as spending over 30% of your pre-tax income on rent, this issue didn’t consider those arriving post-2019 but paints a concerning picture for immigrants between 2016 and 2021.
The Struggle for Affordable Rent
The stats show that a whopping 37.1% of recent immigrant renters are drowning in high shelter costs, a stark contrast to the 23.2% of long-term renters facing the same issue.
With the Canadian Mortgage and Housing Corporation (CMHC) highlighting a shift towards renting due to skyrocketing home ownership costs, it’s no wonder newcomers are feeling the pinch. The average rent for a one-bedroom apartment across Canada sits at $2,149, soaring even higher in big cities like Vancouver and Toronto.
Despite a surge in immigrant renter households by over 21% from 2011 to 2021, these renters are more than twice as likely to live in unaffordable conditions compared to homeowners.
The Income vs. Rent Gap
A major hurdle? Newcomers’ earnings aren’t keeping up with these rising costs. With an average starting salary around $51,480, after taxes, this barely leaves enough for essentials after covering rent, especially in pricier urban centers.
What’s Being Done?
To tackle these challenges, the federal government stepped in with a $500 one-time Canada Housing Benefit top-up and introduced incentives like a $25,000 GST rebate for developers of new rental properties.
Provincially, steps are being taken to boost rental housing supply and make rent more manageable. Ontario is cutting HST on new rental constructions and capping rent increases, while British Columbia has committed to building 114,000 affordable homes and executing a comprehensive Homes for People plan.
IRCC’s Approach to Housing Affordability
The Immigration Refugees and Citizenship Canada (IRCC) is keeping its immigration targets steady with the Immigration Levels Plan 2024-2026, aiming to balance population growth and housing demand. This plan is part of a broader National Housing Strategy, promising over $82 billion to increase housing availability over the next decade.
IRCC suggests a coordinated effort across government departments to align housing, healthcare, and infrastructure with immigration levels, exploring ways to encourage foreign nationals to invest in new housing developments in Canada.
For newcomers to Canada, the dream of affordable living is clouded by high rent costs and a competitive housing market. While efforts are underway at both federal and provincial levels to ease this burden, finding a solution requires a collective, integrated approach that keeps pace with the needs of Canada’s growing immigrant population.
