Federal Liberals Take A Big Step Towards Making Homes More Affordable
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- Опубліковано 25 бер 2024
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Today, I discuss a recent Liberal federal government announcement that targets for non-permanent residents are being lowered - a change in approach to our housing crisis that will have an impact.
See my full article with charts on this topic here: www.movesmartly.com/articles/...
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The numbers are surprising and make a bigger impact than you'd think! See full article and data from John here: www.movesmartly.com/articles/federal-liberals-take-a-big-step-towards-making-homes-more-affordable ~ Urmi
High population growth not only puts upward pressure on housing costs, but also puts downward pressure on wage growth.
And infrastructure (roads, hospitals...)
Hopefully they also start focusing on the quality of immigrants they are allowing in to meet the needs of Canada. Like health care workers and skilled trade.
This means 480,000 people will have to go home within the next 5 years.
Or they can just become permanent residents to get out of the targeted group, which is what's more likely to happen to them given they have 5 years to become PRs.
EXACTLY! This is nothing short of a big “misinformation and disinformation” campaign, to fool gullible Canadians into buying the snake oil they’re selling! 🙄
There is an "easy solution" for this non-permanent residents issue (and that's what the government is going to do). They will turn hundreds of thousands non-permanent to permanent residents, by processing their applications for Stream-A & Stream-B applicants. Thousand of people on this "Safeboat" program have already fulfilled all the requirements - and waited for over 10 months for a response for their applications as landed immigrants...
And by doing that, the government can release a lot of stress for the rental market because these people have enough cash to full pay the property from selling their units in Hong Kong. They were just stucked by the foreign buyers law at this moment.
John, did they threaten you with an audit or something? I normally agree with you, and while this is better than doing nothing, this is just window dressing that will do very little. It may slow the numbers, but not improve things, at least not for decades, if ever. Last year the real number of newcomers was around 2.2 million, which broke down to 500k permanent residents, 660k temporary workers, 900k students, and about 144k people illegally entering the country. To get to the 300k number you mentioned, we would need to drop this combined number by about 86%, which we know is not happening. If they are holding you against your will, just send a signal next video, sneeze 3 times or something. All the best.
The influx of temporary residents, including students, led to a significant surge in the housing Market. However, the current trend of escalating mortgage costs and a declining number of these temporary residents is likely to pop this housing bubble.
Non perm will reduce pressures on inflation. Food. Restaurants. Clothing. Housing maybe a bit on the rental side.
Is this something that is going to happen or just proposed?
Thanks for the update
I've seen other modelling that has projected annual population growth be even lower. 240,000 for 2025 - 2027. This is a massive change to the narrative, especially as population growth was the only reason left to justify rising real estate prices. Every day I hear adds on the radio talking about millions of immigrants coming and RE prices skyrocketing, now that argument is gone.
The real number last year was over 2 million, so even if they scale back it will probably be a million or more from all sources.
Every time I read a new housing headline... "is this the black swan event that will crash the Canadian RE market?" maybe?
Sorry, have to disagree with you on this. This is going to have a VERY NEGLIGIBLE impact on the housing market. It’s not as simple as just saying there’s going to be a cap or reduction in “non-permanent” residents!
First off, this is being implemented over a FIVE year period, which makes zero sense! Most of these so called “non-permanent” residents are going to transition to Permanent Resident (PR) status.
I know the Canadian immigration quite well and how insanely easy it is to gain Canadian permanent residency, compared to say the United States!
I’m originally from the US and went through this process myself, and recently got my Canadian citizenship. So I should know a thing or two about Canadian immigration, and the loopholes the size of Texas, that exist to “game the system”.
But isn't there already a hard set number of 500,000 PRs per year?
Wouldn't one of these nonpermanents being accepted to permanent just knock someone else of the list?
I’m pretty ignorant about this but I THINK you are correct
100% correct, the real number last year from all sources was over 2 million.
Nice video.
they needs to cut more. 5% is not enough
Is this April's fool? putting a 20% cap on the current record-high nonpermanent residents makes the homes more affordable?!!
EXACTLY!! 🙄 Any which way you slice this or dice this, this so called “reduction” is a BIG JOKE! 🙄
Every little bit helps.
Raising the bar on which international students and spouses are granted post graduate work permits will be a much bigger impact than this one.
You can no longer take a one year course to become an ECE and both you and your spouse are granted post graduate work permits while you go to work in a day care. You can come take the courses, but there is no longer a back way into permanent residency.
This translates into 300k additional ppl/year instead of current 1.2m.
We build ~250k homes/yr in Canada and household size is ~2.2
300k/2.2 = 136k
250-136 = 114k more homes built than needed for additional HHs
So, yes it should make homes more affordable (or at least a lot less unaffordable v 1.2m ppl pop growth)
@@HaydonAshurstFamily
Not included is the 500,000 permanent residents that are allowed to immigrate yearly.
Was half that before covid but Trudeau upped it.
@@HaydonAshurstFamily The real number counting all of the sources was around 2.2 million last year. Based on the 2.2 per household we need a million residences just to break even from last year. We will be lucky if they drop the total number to 800k, which means a lot more homes than they can build. This is just political window dressing.
John, this is not massive at all. They are reducing the percentage portion of a growing population, so the net effect is negligible.
Look at the chart provided. The projected future growth is less than the average growth from 2010 to 2020. This is massive!
If the conservative govt coming in next year sticks with it.
Looks like population growth will be closer to 1% instead of the 3% we have had.
@@Jo-mf2vu That chart only shows part of the pie, the real number from all sources was over 2 million last year. This is just window dressing for the voters they hope to keep.
This will slow down the economy
Wishful thinking . But in reality not accurate.
How so?
That is great news.