Immigration is making Canada's housing more expensive. The government was warned 2 years ago

Federal public servants warned the government two years ago that large increases to immigration could affect housing affordability and services, internal documents show.

Documents obtained by The Canadian Press through an access-to-information request show Immigration, Refugees and Citizenship Canada analyzed the potential effects immigration would have on the economy, housing and services, as it prepared its immigration targets for 2023-2025.

The deputy minister, among others, was warned in 2022 that housing construction had not kept up with the pace of population growth.

«In Canada, population growth has exceeded the growth in available housing units,» one slide deck reads.

«As the federal authority charged with managing immigration, IRCC policy-makers must understand the misalignment between population growth and housing supply, and how permanent and temporary immigration shapes population growth.»

Immigration accounts for nearly all population growth in Canada, given the country's aging demographics.

The federal government ultimately decided to increase the number of permanent residents Canada welcomes each year to 500,000 in 2025, a decision that drew considerable attention and scrutiny. That means that in 2025, Canada will welcome nearly twice as many permanent residents as it did in 2015.

The document reveals federal public servants were well aware of the pressures high population growth would have on housing and services.

«Rapid increases put pressure on health care and affordable housing,» public servants warned. «Settlement and resettlement service providers are expressing short-term strain due to labour market conditions, increased levels and the Afghanistan and Ukraine initiatives.»

Demand outpacing supply

Housing