Immigrants Surpass Canadian-Born Citizens in Homeownership: A New Era for Canada’s Housing Market

In a remarkable shift that challenges long-held assumptions, recent data from Statistics Canada reveals that established immigrants now surpass Canadian-born citizens in homeownership rates. As of June 2025, 69.7% of established immigrants (those who have lived in Canada for at least five years) own homes, compared to 61.9% of Canadian-born individuals. This trend underscores a significant evolution in Canada’s housing landscape, driven by cultural, economic, and policy factors.

A Shift in Homeownership Trends

For decades, Canadian-born households were seen as the primary drivers of homeownership. However, the latest numbers paint a different picture. Established immigrants are now more likely to own homes than their Canadian-born counterparts, a reversal that highlights the growing influence of immigrant communities on the housing market.

Recent immigrants, however, face steeper challenges. Those who have lived in Canada for less than five years have a homeownership rate of just 38.7%, reflecting the barriers newcomers often encounter when entering the housing market. These include limited credit histories, lower savings, and higher costs in urban centers.

Cultural and Family Dynamics: A Key Driver

Cultural values play a significant role in this trend. Immigrant families, particularly in major cities like Toronto and Vancouver, often prioritize homeownership as a marker of stability and success. In these cities, where immigrant populations make up 46.6% and 41.8% respectively, multi-generational co-ownership has become a common practice.

Over 75% of co-owning parents in these cities are immigrants, reflecting a cultural preference for shared responsibility and investment in family assets. This approach not only strengthens financial stability but also serves as a strategic response to Canada’s high real estate costs.

Economic and Policy Factors: Building a Path to Ownership

While recent immigrants may struggle initially, their ability to achieve homeownership improves significantly over time. Data show that after five years in Canada, immigrants begin to close the gap with Canadian-born homeowners. By the sixth year, they are more likely to live in owned homes than rented ones.

Government policies have also played a role in supporting this trend. In recent years, Canada has prioritized pathways for immigrants and non-permanent residents to become permanent residents, recognizing their long-term economic contributions. These policies have helped create a more stable foundation for immigrants to build wealth and invest in housing.

The Homeownership Journey: From Arrival to Ownership

The journey to homeownership for immigrants is marked by distinct phases. In the first five years, renting is the norm, with only about 70 out of 1,000 immigrants living in owned homes during their first year. However, this number rises steadily as they establish themselves in the country.

By the five- to ten-year mark, immigrants become more likely to own homes than rent them. Homeownership rates climb from 147 units per 1,000 people in the fifth year to 218 per 1,000 in the tenth year. This upward trajectory reflects the financial progress immigrants make as they build credit, secure better jobs, and accumulate savings.

After a decade or more in Canada, homeownership rates among immigrants not only stabilize but surpass those of Canadian-born citizens. This long-term trend highlights the resilience and determination of immigrant communities in achieving their financial goals.

Regional Implications: A Changing Housing Market

The impact of immigrant homeownership is particularly evident in Canada’s major urban centers. Cities like Toronto and Vancouver, with their large immigrant populations, are seeing increased demand for housing driven by co-ownership arrangements and multi-generational investments.

While this trend has contributed to rising homeownership rates, it also raises questions about housing availability and affordability. In regions with high immigrant populations, the demand for homes often outpaces supply, exacerbating competition in already tight markets.

For policymakers, these developments present both opportunities and challenges. As Canada continues to welcome immigrants as a key part of its population growth strategy, addressing the housing needs of diverse communities will be essential to ensuring long-term economic and social stability.

For now, one thing is clear: the homeownership landscape in Canada is evolving, and immigrants are playing a central role in shaping its future.

Understanding the Factors Behind the Trend

The rise in immigrant homeownership can be attributed to a combination of cultural, economic, and policy-related factors. As highlighted in the data, established immigrants surpass Canadian-born citizens with a homeownership rate of 69.7%, compared to 61.9%. This gap is even more pronounced when considering the journey immigrants undertake to achieve homeownership.

Cultural Influences on Homeownership

Cultural values play a pivotal role in driving homeownership among immigrant communities. In cities like Toronto and Vancouver, where immigrant populations are significant, the practice of multi-generational co-ownership has become a common strategy. Over 75% of co-owning parents in these cities are immigrants, reflecting a cultural emphasis on family collaboration and shared financial responsibility.

This approach not only helps immigrants overcome the high costs of real estate but also reinforces the cultural significance of homeownership as a marker of stability and success. By pooling resources, immigrant families are able to invest in properties that might otherwise be unattainable for individual buyers.

Economic Progress and Policy Support

Economic factors also play a crucial role in the increasing homeownership rates among immigrants. While recent immigrants face challenges such as limited credit histories and lower savings, these barriers diminish over time. As immigrants establish themselves in Canada, they build financial stability, secure better employment opportunities, and accumulate the resources needed to invest in homeownership.

Government policies have further supported this trend by providing pathways for immigrants and non-permanent residents to become permanent residents. These policies recognize the long-term economic contributions of immigrants and create a more stable foundation for them to build wealth and achieve homeownership.

The Homeownership Journey: A Detailed Analysis

The journey to homeownership for immigrants is a gradual process, marked by distinct phases. In the first five years after arrival, renting is the norm, with only about 70 out of 1,000 immigrants living in owned homes during their first year. However, this number increases steadily as immigrants establish themselves in the country.

By the five- to ten-year mark, immigrants become more likely to own homes than rent them. Homeownership rates climb from 147 units per 1,000 people in the fifth year to 218 per 1,000 in the tenth year. This upward trajectory reflects the financial progress immigrants make as they build credit, secure better jobs, and accumulate savings.

After a decade or more in Canada, homeownership rates among immigrants not only stabilize but surpass those of Canadian-born citizens. This long-term trend highlights the resilience and determination of immigrant communities in achieving their financial goals.

Regional and Market Implications

The impact of immigrant homeownership is particularly evident in Canada’s major urban centers. Cities like Toronto and Vancouver, with their large immigrant populations, are seeing increased demand for housing driven by co-ownership arrangements and multi-generational investments.

While this trend has contributed to rising homeownership rates, it also raises questions about housing availability and affordability. In regions with high immigrant populations, the demand for homes often outpaces supply, exacerbating competition in already tight markets.

For policymakers, these developments present both opportunities and challenges. As Canada continues to welcome immigrants as a key part of its population growth strategy, addressing the housing needs of diverse communities will be essential to ensuring long-term economic and social stability.

For now, one thing is clear: the homeownership landscape in Canada is evolving, and immigrants are playing a central role in shaping its future.

Conclusion

The rise of immigrant homeownership in Canada marks a significant shift in the nation’s housing landscape. With established immigrants surpassing Canadian-born citizens in homeownership rates, this trend reflects a combination of cultural, economic, and policy factors. Immigrant communities, particularly in major cities like Toronto and Vancouver, are driving this change through practices like multi-generational co-ownership, which not only helps overcome high real estate costs but also reinforces cultural values of stability and success.

While recent immigrants face initial challenges such as limited credit histories and lower savings, their ability to achieve homeownership improves over time. Government policies supporting pathways to permanent residency have further facilitated this progress. As Canada continues to welcome immigrants as a key component of its population growth strategy, addressing the housing needs of diverse communities will be crucial for long-term economic and social stability.

This evolving homeownership landscape underscores the resilience and determination of immigrant communities. Their central role in shaping Canada’s housing future is undeniable, signaling a new era where immigrants are not just participants but key drivers of the market.

FAQ

Why are established immigrants more likely to own homes than Canadian-born citizens?

Established immigrants, those who have lived in Canada for at least five years, often achieve higher homeownership rates due to cultural values prioritizing homeownership, financial stability gained over time, and government policies supporting their integration into the housing market.

What challenges do recent immigrants face in buying homes?

Recent immigrants often encounter obstacles such as limited credit histories, lower savings, and higher costs in urban areas, which can delay their ability to purchase homes.

How do cultural factors influence immigrant homeownership?

Cultural values emphasizing stability and success, along with practices like multi-generational co-ownership, significantly influence immigrants’ prioritization of homeownership, helping them overcome high real estate costs.

What role do government policies play in immigrant homeownership?

Government policies providing pathways for immigrants to become permanent residents create a stable foundation for building wealth and achieving homeownership, recognizing their long-term economic contributions.

What does this trend mean for Canada’s housing market?

This trend indicates a shift in demand dynamics, particularly in urban centers with high immigrant populations, leading to increased competition and highlighting the need for policies addressing housing availability and affordability.