Immigrants in Canada can work their way to homeownership and often do so at greater rates on average than the Canadian-born population.
A recent study by Statistics Canada examines the typical journey of immigrants to homeownership and the various stages it entails.
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Findings and trends in immigrant homeownership and housing use
The recent Statistics Canada study, authored by Haozhen Zhang and Feng Hou, sought to understand the typical use of housing by immigrants (new permanent residents) and non-permanent residents (work and study permit holders).
The measure that the study looked at was typical housing use per 1,000 individuals, with consideration to both owned and rented units. This data was taken from the 2021 national census.
The study noted overall that there is an upward trend in homeownership and a downward trend in renting, with “immigrants’ increased length of residency” in Canada.
Through their research, the authors were able to break down the homeownership journey of immigrants into a few distinct stages:
0-5 Years after admission
Upon first landing, most immigrants typically rent housing units as they seek to establish themselves and build credit scores and savings in a new country.
In this period, the shift between renting to owning a home is less pronounced, bringing the total use of housing (owned and rented units) for new immigrants to roughly 300 units per 1,000 individuals.
While initially featuring a wide gap between owned and rented housing units per 1,000 people, this divide gradually closes, in line with the overall trend of immigrants gradually working their way to homeownership as their time in Canada increases:
| Years since admission | Owned units per 1,000 people | Rented units per 1,000 people |
|---|---|---|
| 0 | 52 | 269 |
| 1 | 70 | 236 |
| 2 | 89 | 216 |
| 3 | 125 | 202 |
| 4 | 146 | 186 |
| 5 | 147 | 170 |
5-10 Years after admission
After five years, the increase in homeownership among immigrants becomes more pronounced.
By the sixth year, we see the numbers invert, where immigrants occupy more owned housing units per 1,000 people than rented units. These trends continue and become more pronounced with time, as noted earlier.
Within this time frame, total use of housing units (both owned and rented) climbs from 341 to 367 units per 1,000 people, significantly higher than the initial 321 units per 1,000 people noted at landing.
| Years since admission | Owned units per 1,000 people | Rented units per 1,000 people |
|---|---|---|
| 5 | 147 | 170 |
| 6 | 177 | 164 |
| 7 | 195 | 160 |
| 8 | 197 | 154 |
| 9 | 211 | 147 |
| 10 | 218 | 150 |
10+ Years after admission
Within this time frame, immigrants’ cumulative housing use continues upwards, nearing the use of housing of Canadian-born individuals.
The use of rental units (unlike owned housing units) among immigrants tends to fluctuate within this time period, but follows a general downward trend, as purchase and use of owned housing units steadily increase.
| Years since admission | Owned units per 1,000 people | Rented units per 1,000 people |
|---|---|---|
| 11 | 233 | 145 |
| 12 | 242 | 142 |
| 13 | 246 | 141 |
| 14 | 252 | 144 |
15+ Years after admission
By the 15th year of their residency in Canada, the total housing use of immigrants per 1,000 people reaches 409 units per 1,000 people, exceeding the average total use of housing by the Canadian-born population, which stands at a cumulative 397 units per 1,000 people.
This trend continues throughout the period studied. As the residency of immigrants reaches its 20th year in Canada, they, on average use a cumulative 454 units per 1,000 people.
| Years since admission | Owned units per 1,000 people | Rented units per 1,000 people |
|---|---|---|
| 15 | 267 | 143 |
| 16 | 282 | 137 |
| 17 | 290 | 138 |
| 18 | 304 | 135 |
| 19 | 311 | 133 |
| 20 | 321 | 132 |
The findings from this study are also given as a graph for easier visualization:
What cultural influences explain these trends in homeownership?
Many of these trends can be explained by changes in the household composition of immigrants as they spend more time in Canada.
Initially, newcomers often live in larger households with extended family members, such as parents and grandparents, to cut down on costs and manage economic challenges.
As immigrants become more economically stable and settled, household sizes usually decrease due to children moving out, an increase in savings and purchasing power, and the adoption of Canadian norms favoring nuclear families.
Over time, this results in an increase in per capita housing use as immigrants shift from renting to owning homes.
In addition, the economic viability of immigrants is a key factor in explaining their transition from renting to owning houses.
Economic immigrants to Canada (the largest cohort of new immigrants to the country every year) are chosen for their viability in the job market, on the basis of factors such as education and work experience.
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