Canadian newcomers represent 1 out of every 5 homebuyers
Wednesday Nov 06th, 2019
According to a new survey commissioned by Royal LePage, newcomers represent one in every five homebuyers (21 per cent) in Canada. If the current international migration level is maintained, newcomers are expected to purchase 680,000 homes over the next five years.
"In addition to supporting Canada's economic growth, newcomers to Canada are vital to the health of our national real estate market," said Phil Soper, president and CEO of Royal LePage. "The combined demand for affordable housing among younger Canadians and new Canadians can be met through housing policies that encourage smart and sustainable development, with a focus on protecting and developing green spaces in our urban centres. Canada's economy and labour markets are expanding and it is crucial that housing supply keeps pace."
Eighty-six per cent of newcomers see real estate as a good investment and 75 per cent arrive with savings to help purchase a property.
The study showed that newcomes wait three years before purchasing a home after arriving in the country. Sixty-four per cent of respondents rent their first home, 15 per cent purchase, and 18 per cent choose to first live with family or friends at little or no cost.
Despite the desire to purchase a home, the homeownership rate of newcomers is only 32 per cent. The overall homeownership rate for all Canadians is 68 per cent.
Of those who purchae a home, 51 per cent of newcomers buy a detached house, 18 per cent buy a condominium, 15 per cent buy a townhouse and 13 per cent buy a semi detached house.
Nationally, 82 per cent of respondents remain in the region of their first residence. Those who relocate cited a better job as the most popular reason for moving (41 per cent), followed by lifestyle (13 per cent), and housing affordability allowing the respondent to purchase a home (12 per cent).
Ontario accounts for approximately 46 per cent of all international migration to Canada, with 32 per cent of homeownership residing in the GTA and Ottawa.
In the province, 60 per cent of newcomers rent their first home, 16 per cent purchase, and 20 per cent live with family or friends at little or no cost when they arrive in Canada.