New federal figures show Canada required tens of thousands of housing units last year to accommodate newly arrived permanent residents, adding further pressure to an already strained housing market.Blacklock's Reporter says a report from the Immigration, Refugees and Citizenship Canada estimates that the 395,000 people granted permanent residency in 2025 required roughly 81,560 housing units — equivalent to just over one-third of all urban housing starts recorded that year.The data, based on Canada Mortgage and Housing Corporation figures, indicates there were 241,171 urban housing starts in 2025, meaning demand associated with new permanent residents accounted for about 34% of new construction activity in cities.The department expects another 385,000 permanent residents to arrive under federal targets this year, continuing sustained population-driven demand for housing.Officials did not include housing demand tied to temporary residents, such as international students and migrant workers, despite their significant presence. Federal estimates show more than 2,069,000 people are currently in Canada on temporary permits.The report notes that immigration affects housing demand not only through new arrivals but also through earlier cohorts who remain in the country and continue to shape long-term housing needs, including transitions between rental and ownership markets..In 2023, Canada’s population grew by 3.2%, the fastest annual rate since 1957, driven by an increase of 805,000 temporary residents and 472,000 permanent residents. Researchers said the rapid growth intensified concerns about housing supply, particularly in major urban centres.The federal government later responded with reduced immigration targets beginning in 2024, with then-prime minister Justin Trudeau saying communities and infrastructure needed time to “catch up.”That year, Ottawa implemented an average 11% reduction in immigration quotas following analysis from the Bank of Canada suggesting newcomers contribute to rising rents because most initially enter the rental market. The bank also found immigrants are less likely to become homeowners until roughly 10 years after arriving in Canada.“Strong population growth in recent years has boosted demand for housing,” the Bank of Canada noted in its Monetary Policy Report. “This is adding to existing pressures on house prices and rents.”A separate 2025 analysis from Immigration, Refugees and Citizenship Canada estimated that immigration levels may account for up to 21% of shelter cost inflation across Canadian municipalities, highlighting what officials described as a complex relationship between population growth and housing affordability.
