Homeownership Increased for Recent Immigrants in Canada, Decreased for Canadian-Born: StatsCan

Statistics Canada Study: Immigrant Homeownership Rising, Canadian-Born Declining

A new Statistics Canada study released Tuesday reveals a significant shift in Canadian homeownership patterns: rates among recent immigrants are growing, while they’re declining for Canadian-born individuals.

The Numbers Tell a Story

In Ontario, homeownership among recent immigrants in their fifth year of Canadian residence rose from 35.7 per cent in 2018 to 40.2 per cent in 2021 — an increase of over 12 per cent. During the same period, Canadian-born individuals experienced a five per cent decrease, dropping from 50.7 per cent to 47.8 per cent.

Recent immigrants reported the highest homeownership rates in the Maritimes and Manitoba, where their ownership levels were comparable to those of Canadian-born individuals in these regions.

“As they spend more time in Canada, recent immigrants are more likely to own residential properties,” said Samuel MacIsaac, a senior research analyst with Statistics Canada’s Centre for Housing and Income Statistics.

“While immigrants remain less likely to be homeowners than the average Canadian-born person by their fifth year, that gap in ownership reduces substantially,” MacIsaac added.

The data also found that at least one in ten refugees became homeowners after five years of settlement in Canada, including nearly one in five in Ontario.

The study analysed tax filing data from recent immigrants aged 25 to 54 who were in their first five years as permanent residents, covering Prince Edward Island, Nova Scotia, New Brunswick, Ontario, Manitoba, Alberta and British Columbia.

Prioritising Property Over Retirement Savings

The research uncovered that recent immigrants prioritised property ownership over their registered retirement savings plans (RRSPs) and were more willing to take on larger mortgage debt.

In 2021, recent immigrants who purchased a home earned lower incomes than Canadian-born first-time buyers, yet they were less likely to contribute to an RRSP. MacIsaac suggested one explanation: “Immigrants may be more likely to view the primary residence as a form of equity building, whereas their Canadian-born counterparts may be more likely to use retirement savings or other tools.”

Recent immigrants carried larger mortgage debts overall. Those who became homeowners under age 35 paid higher monthly mortgages from 2018 to 2021 than Canadian-born households, meaning they were more exposed to housing market fluctuations.

More than 85 per cent of recent immigrants who owned a home in their first year had already lived in Canada as non-permanent residents — arriving on work or study permits, or through asylum claims — before being admitted as permanent residents.

Trends by Region of Birth

Homeownership rates varied significantly depending on immigrants’ regions of birth:

• South Asian immigrants in their fifth year held homeownership rates of 46 per cent in British Columbia and 53.8 per cent in Ontario.
• Southeast Asians in their fifth year ranged from 23.3 per cent in Ontario to 59.9 per cent in New Brunswick.
• East Asian permanent residents in 2021 were the most likely to become homeowners in Ontario, Alberta and British Columbia.

“Where recent immigrants were born could definitely be a factor towards their homeownership and their homeownership trajectories,” MacIsaac noted.

“Permanent residents born in Europe, the United States, or Oceania generally had similar homeownership rates as Canadian-born individuals — and that was the general trend across most provinces studied.”