The housing crisis in Canada has been becoming more and more imminent with each passing month. As the country keeps on inviting more and more immigrants, the issue keeps getting worse and hence needs to be solved soon. On this, both the former and recently made immigration ministers believe that Canada should keep up with its immigration levels and invite skilled workers. They believe that inviting workers will solve this issue.
Canada’s Housing Crisis
According to the Canada Mortgage and Housing Corporation (CMHC) report released in June, Canada is going to need more than 22 million housing units by 2030. The country needs these many housing units so that it could overcome housing unaffordability.
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Many would wonder if this shortage of houses in Canada is because of the high number of immigration. The increasing number of immigrants being welcomed in Canada is causing concerns as the population rise is also causing driving up demand, raising costs, and lowering supply. Thus ultimately making houses unaffordable for everyone in Canada.
Though this is not what the governments think, at the same time they are also asking for caution and better immigration plans.
Why is there a housing shortage in Canada?
Royal Bank of Canada (RBC) reports that one of the biggest reasons for this housing shortage is because of higher residential construction prices. This increase in housing prices started since the pandemic back in 2020. Apart from housing costs being high because of the pandemic, another reason why this is so could be largely contributed to the labor shortage.
Canada has been chronically facing labor shortages and that occupies a large part of the reason why the country is not able to provide houses to everyone. Along with that, there’s a workforce gap, an increasing number of baby boomers retiring in the upcoming eight years or so, and a low supply of raw materials.
RBC’s report also says that labor costs are much higher due to increasing job openings in the construction industry of Canada. As more construction workers are retiring or leaving their jobs, vacancies are opening up and the need of Canada for workers increases.
The answer to this issue according to the Canadian government is inviting more skilled workers. These workers would play a vital role in building more houses and hence help in overcoming the housing crisis that Canada is facing.
So, all in all, we could expect more Express Entry draws as well as provincial nominee draws to invite workers from the construction occupations.
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