It may come as no surprise to newish immigrants to learn that one in every five homes in Canada is bought by newcomers, however, it may be a startling piece of news for many others. This survey was released by Royal this week.
The Royal LePage Newcomer 2019 Survey, which was commissioned by the real estate company, found that newcomers spend about three years in Canada before buying a home and that 75 per cent of them arrive with savings or cash to help buy a home.
About 1,500 people, all of whom arrived in Canada within the last 10 years, were interviewed by public opinion polling and market research company Leger for the survey and it was conducted online in August.
Newcomers represent about 21 per cent of all homebuyers in Canada, suggesting that newcomers are spurring real estate demand.
“We know that Canada is a country of immigrants and we know that newcomers to Canada are an important part of our economic growth. What surprises us in the data is just how important they are to Canada’s real estate market,” Soper said in an interview.
If current international migration levels are maintained, Royal LePage estimates that newcomers are expected to buy 680,000 homes in Canada over the next five years.
The projected home sales were calculated using historic migration levels from Statistics Canada, the survey’s home ownership rate of newcomers and Canadian Real Estate Association and Canadian Mortgage and Housing Corporation unit sales data.
Royal LePage defined newcomers as people who have lived in Canada for 10 years or less. They include immigrants, students, refugees and citizens from other countries in Canada to work. According to the company, 31 per cent of newcomers are part of a family, 25 per cent are students, while 20 per cent are on their own. The vast majority of newcomers are immigrants, Soper said.
Newcomers to Canada represent between two to three million people, while the total Canadian population is roughly 37 million.
The survey found that 86 per cent of newcomers see real estate as a good investment.
About 32 per cent of newcomers in Canada own homes, while 68 per cent of all Canadians are homeowners, according to the survey.
Of newcomers who buy a home, the survey says 51 per cent buy a detached house, 18 per cent buy a condo, 15 per cent buy a townhouse and 13 per cent buy a semi-detached house.
It is clear that going forward the real estate industry will become champions for more immigration pointing out to just how much of an asset immigrants are for the real estate industry. The next study will undoubtedly be the number of jobs connected to real estate. -CINEWS