The effects of slowing population growth have started to show up in some sectors of the economy, more than a year after the federal government reduced its immigration targets. This year is expected to be the second in a row with zero population growth in Canada after the federal government reduced its immigration targets 16 […]

One of the clearest effects of slowing population growth has been in real estate on the rental market, said Shelly Kaushik, senior economist at BMO Capital Markets, in an interview.

Newcomers, such as temporary foreign workers and international students, show up in very specific areas of the economy, she explained, and this is one of them.

“One of the fastest effects we’ve seen is deceleration in rental prices across the country, but especially in places like Ontario and (British Columbia), where there is and was certainly a larger share of international students coming into the country,” she said.

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A drop in demand for rental units has also begun trickling into the overall housing market.

Smaller properties, such as condos, are now seeing a glut of inventory of new builds, but there are hardly any buyers, because renting out the units is a riskier proposition than it was a few years ago.

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There has also been a slowdown in investor activity in the housing market, which would be a drag on home building this year, he said.

“You’re getting this period of a real stagnation in the housing market through this year and into next year, in part driven by population,” Ercolao said.

Canada Mortgage and Housing Corp. last month reported the agency’s six-month moving average for annual starts declined 3.5 per cent for the fourth consecutive month.

But the effects of slowing population growth haven’t been the same across all housing types.

“Detached (housing) market isn’t seeing as much of an effect since a very small share of newcomers to Canada aren’t really engaged in that part of the market,” Ercolao said.

  • maplesaga@lemmy.world
    14·
    20 hours ago

    Private housing is failing because its not a free market. Zoning prevents density, permitting and approvals cause large costly delays, developer fees have risen thousands of percent, we have greenbelt now that prevents large swathes from being developed. What can public housing do against Nimbys and municipals that secretly dont want density because it might lower property values or add congestion?

    The NDP and Liberals are clearly willing to label anyone a racist who goes against immigration, but they seem to also be fine with putting these same people 20 to a basement, which sounds more racist to me.