December 18, 2009 -- While low interest rates have enhanced affordability, they are only one factor contributing to the market’s strength. The steady stream of newcomers to the Greater Toronto Area, all of whom have housing needs, are another important factor.
According to Canada’s 2006 Census, a detailed statistical report issued every five years, our proportion of foreign-born citizens has been growing since 1951 and has reached its highest level in 75 years.
It found that nearly one in five people in Canada are now foreign-born. In fact, Canada ranks second only to Australia, where 22 per cent of the population is foreign-born.
The GTA’s immigration statistics are even more staggering. In Toronto, nearly 46 per cent of the population is foreign-born. That’s the highest percentage in North America and even higher than any of Australia’s major cities.
Our diversity of employment opportunities and housing stock attract people from all over the world, the majority of whom currently hail from India, China, Pakistan, the Philippines and Sri Lanka. A third reason that newcomers are drawn to our country though, is to join family and friends, and with a strong support system in place, many immigrants are buying homes more quickly than before.
The 2006 Census reports that 72 per cent of immigrants live in dwellings owned by household members, up from 68 per cent in 2001, with the most significant increase being among those living in Canada for less than 10 years.
This equates to more housing demand not only in Toronto, but in the surrounding area as well. While the City of Toronto attracts the majority of newcomers at nearly 60 per cent, the number of immigrants in the 905 Region is also increasing. In Markham nearly 57 per cent of the population is foreign-born, in Mississauga nearly 52 per cent of residents were born outside of Canada and in Brampton that figure is 48 per cent. In Vaughan the number of foreign-born residents is comparable, at nearly 45 per cent, with Ajax and Aurora not far behind at 30 and 22 per cent respectively.
Regardless of where you live in the GTA, you can thank immigration for bringing thousands of new potential buyers to you each year. While the figure has fluctuated between 70,000 and 100,000 throughout the past decade, in 2007, the year for which most recent data is available, we welcomed 93,000 newcomers to our city.
A recent Scotiabank report notes that due to Canada's aging population and low fertility rates, a decade from now, 75 per cent of the country's population growth could come from immigration as compared to the current rate of approximately 60 per cent.
This equates to a steady demand for housing in our city as newcomers are drawn to Toronto’s exceptional mix of cultural, employment and housing diversity.
As Canada’s gateway to the world, the Greater Toronto Area’s future and specifically, that of its real estate market is unquestionably bright.
No comments:
Post a Comment