1 In 5 Homes In Canada Bought By Newcomers, Royal LePage Survey Says

One in every five (5) homes in Canada is bought by new immigrants to the country, according to a Royal LePage survey announced on Wednesday.

The Royal LePage Newcomer 2019 Survey, which was launched by the real estate company, found that new permanent residents spend about three years in Canada before buying a home and that Seventy-five (75) per cent of new immigrants arrive with cash or savings to help buy a home.

About 1,500 newcomers, all of whom arrived in Canada within the last ten (10) years, were interviewed by public opinion surveys and market research company Leger for the survey and it was held online in August.

The president and CEO of Royal LePage, Phil Soper, declared in an interview with Radio-Canada that the survey found that new immigrants represent about twenty-one (21) per cent of all homebuyers in Canada. That number suggests newcomers to the country are contributing “massively” to real estate demand, he said.

“We understand that Canada is a country of immigrants and we know that new immgrants to Canada are an intergral part of our economic growth. What surprises me in the data is just how crucial they are to Canada’s real estate market,” Soper jesticulated.

If current international immigration levels are maintained, Royal LePage estimates that new immigrants to the country are expected to buy 680,000 homes in Canada over the next couple of years.

The estimated home sales were calculated using historic immigration levels from Statistics Canada, the survey’s homeownership rate of new immigrants and Canadian Real Estate Associations and Canadian Mortgage and Housing Corporation unit sale data.

Royal LePage defined newcomers as immigrants who have lived in Canada for ten (10) years or less. They include refugees, immigrants, students, and citizens from other countries in Canada to work. According to the company, thirty-one (31) per cent of newcomers are part of a family, twenty-five (25) per cent are students, while twenty (20) per cent are on their own. A large number of newcomers are immigrants, Soper said.

Soper claims new permanent residents to Canada represent between two (2) to three (3) million people, while the total Canadian population is approximately thirty-seven (37) million. He opined that about 300,000 people come to Canada as immigrants each year.

“What was surprising to us is just how many newcomers coming to Canada are focused on owning a home. Depending on the region of the country, almost all newcomers arrive with the necessary funds to purchase a home,” Soper said.

The survey found that eighty-six (86) per cent of immigrants see real estate as a good investment.

About thirty-two (32) per cent of new immigrants in Canada own homes, while sixty-eight (68) per cent of all Canadians are homeowners, according to the Royal LePage survey.

Of newcomers who purchase a home, the survey says fifty-one (51) per cent buy a detached house, eighteen (18) per cent buy a condo, fifteen (15) per cent buy a townhouse and thirteen (13) per cent buy a semi-detached house.

“It used to be that an people got on a ship and arrived in the new country and they really didn’t know what they were getting into. But with the internet, of course, immigrants understand the economies, the job markets, the housing markets of the regions or jurisdictions that they are arriving in,” he said.

“If they choose a relatively costly part of the Canada, like Vancouver, they probably have the means to live in Vancouver.”