Canada's Population Boom Continues, But Housing Market Stays Steady
Canada's population growth shows no signs of slowing down, with Statistics Canada reporting the country surpassed the 41 million mark in the first quarter of 2024. This marks the highest annual growth rate since 1957, driven largely by immigration.
The trend isn't uniform across provinces. Ontario and British Columbia continue to be major draws, with Alberta seeing a resurgence due to a rebounding oil and gas sector. However, provinces like Saskatchewan and Manitoba are experiencing slower growth.
Alberta Quarterly Population Growth
British Columbia Quarterly Population Growth
Ontario Quarterly Population Growth
Despite these impressive population figures, the anticipated surge in housing prices hasn't materialized. Experts offer a few explanations:
Increased Housing Supply: A recent focus on building permits and streamlining approvals has led to a rise in new housing construction, particularly in major cities. This additional supply is helping to meet the growing demand.
Rising Interest Rates: The Bank of Canada's recent interest rate hikes have made mortgages more expensive, dampening investor enthusiasm and cooling the previously red-hot housing market.
Work-From-Home Shift: The pandemic-induced shift to remote work allows Canadians more flexibility in choosing where to live. This could be spreading population growth beyond traditional urban centres, easing pressure on housing markets in those areas.
While the current housing market may be a welcome respite for potential buyers, long-term implications remain to be seen. With immigration targets expected to remain high, the government may need to continue focusing on facilitating sufficient housing supply to avoid future price spikes.
It's also important to acknowledge the pressure population growth puts on infrastructure and social services. Ensuring these areas can keep pace with the rising population will be crucial for maintaining Canada's high quality of life.
