Liberal government’s immigration plan will cut housing gap almost in half, report says

The recent decision by the Liberal government to reduce immigration levels is expected to have a significant impact on the housing market in Canada. According to a new report from the Parliamentary Budget Officer, the decrease in immigration levels will nearly cut the need for new housing units in half by 2030.

The report states that the government’s new immigration plan, which includes reducing the number of new permanent residents from 485,000 this year to 395,000 in 2025 and further cuts in the following years, will result in a 45 percent reduction in the housing gap by 2030. This means that the housing gap is estimated to be reduced by 534,000 units, with a projected total of 658,000 units needed by 2030.

Immigration Minister Marc Miller announced these cuts last month, citing the need to ease pressure on housing, infrastructure, and social services. The government believes that by reducing immigration levels, they can better manage the demand for housing and ensure that all residents have access to quality jobs, homes, and support services.

The report also highlights the uncertainty surrounding the government’s immigration predictions, particularly with regards to the outflow of non-permanent residents. This uncertainty means that the forecasted 45 percent reduction in the housing gap may be an upper-bound estimate.

To meet the projected housing gap of 658,000 units by 2030, Canada will need to build approximately 2.3 million homes, averaging about 390,000 units per year between 2025 and 2030. This will require careful planning and coordination to ensure that the housing market can accommodate the changing population dynamics.

Conservative Leader Pierre Poilievre has also weighed in on the issue, stating that a Conservative government would align immigration levels with the number of houses being built. He emphasized the importance of balancing immigration with housing supply to prevent inflation in housing prices.

While Poilievre has not provided detailed plans on how a Conservative government would manage immigration, he has indicated that factors such as job availability and healthcare services would be taken into consideration when setting immigration levels. This suggests that a holistic approach to immigration policy may be necessary to address the housing challenges facing Canada in the coming years.