Aug 25, 2020 by Sean MacKay

There has been a staggering decline in new arrivals to Canada because of the pandemic going on. According to Senior Economist Andrew Agopsowicz’s research note from RBC, the visa applications had also fallen 80 percent during this period showing that “the slowdown could be lengthy.”

The longer term impact of this precipitous fall on the country’s housing market, this is what Capital Economics’ Stephen Brown is fretting about.

“The sudden plunge in immigration is a particular concern given the number of homes under construction is near a record high,” Brown wrote.

“Even if immigration dropped by just half, the ratio of units under construction to population growth would be far higher than at any point in the past three decades,” Brown continued. He also added that the home sales and new home building permits are still strong. With all these, 2021 still depends on how quickly immigration can bounce back.

Immigration decline is biggest threat to home construction: Capital Economics

What does this mean?

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