Recent insights from a Statistics Canada study indicate a notable shift in homeownership trends between recent immigrants and Canadian-born individuals. The results highlight an increase in homeownership rates among recent immigrants, while concurrently revealing a decline for Canadian-born citizens.
In Ontario, the homeownership rate for recent immigrants who have been in Canada for five years rose significantly from 35.7 percent in 2018 to 40.2 percent in 2021, marking an increase of over 12 percent. Conversely, the homeownership rates among Canadian-born individuals showed a five percent decrease during the same period, dropping from 50.7 percent to 47.8 percent.
The study indicated that recent immigrants experienced the highest homeownership rates in the Maritimes and Manitoba, exhibiting figures that were similar to those of Canadian-born individuals in these areas. Samuel MacIsaac, a senior research analyst with Statistics Canada, emphasized that as recent immigrants spend more time in Canada, their likelihood of owning residential properties increases.
However, MacIsaac noted that even five years post-immigration, immigrants generally remain less likely to own homes than their Canadian counterparts, although the disparity in ownership rates notably diminishes over time. The research revealed that over 85 percent of recent immigrant homeowners had initially resided in Canada as non-permanent residents and migrated to the country through work or study permits, or via asylum claims before transitioning to permanent resident status.
The findings also highlighted that at least one in ten refugees achieved homeownership after five years in Canada, with nearly one in five of these homeowners located in Ontario. The study utilized tax filing data from recent immigrants aged 25 to 54, who had been in Canada for less than five years as permanent residents, covering regions including Prince Edward Island, Nova Scotia, New Brunswick, Ontario, Manitoba, Alberta, and British Columbia.
Recent Immigrants Purchased Expensive Homes, Made Larger Mortgage Payments
Further aspects of the study illustrate that recent immigrants demonstrated a tendency to prioritize property ownership over contributions to registered retirement savings, opting to take on larger mortgage debts. The research showed that recent immigrants tended to buy more expensive homes despite earning lower incomes compared to Canadian-born first-time buyers. By 2021, it was evident that recent immigrants who bought homes were less likely to participate in a Registered Retirement Savings Plan (RRSP) compared to their Canadian-born counterparts.
MacIsaac provided insight into this finding, suggesting that immigrants may view homeownership primarily as a means of equity building, while Canadian-born individuals might lean more toward retirement savings and other financial tools. Additionally, it was observed that recent immigrants were subject to greater exposure to fluctuations in the housing market than Canadian-born individuals, particularly those under 35, who faced higher monthly mortgage payments from 2018 to 2021 when compared to Canadian-born households.
Homeownership Trends by Region of Birth
The study also examined homeownership trends based on the regions of birth for immigrants. South Asian immigrants in their fifth year in Canada reported homeownership rates of 46 percent in British Columbia and 53.8 percent in Ontario. In contrast, Southeast Asians showed varied rates, with 23.3 percent in Ontario and 59.9 percent in New Brunswick.
Notably, permanent residents from East Asia in 2021 were identified as the most likely to achieve homeownership in Ontario, Alberta, and British Columbia. MacIsaac pointed out that the region of birth for recent immigrants could play a significant role in their homeownership trajectories, with permanent residents from Europe, the United States, or Oceania typically reflecting homeownership rates comparable to those of Canadian-born individuals across most of the studied provinces.
