Guiding Canadian newcomers

Newcomers to Canada

A significant driver of homeownership demand

Sarah Louise Gardiner - Director of Communications

One in every five homes is purchased by Canadian newcomers

Over 425,000 newcomers arrived in Canada in 2018, representing 80.5 per cent of Canada’s population growth. This growing demographic is a significant driver of home purchases in Canada’s urban markets. Royal LePage took an in-depth look at Canadian newcomers (those living and working in Canada for less than ten years) and homeownership in its 2019 Royal LePage Newcomer Study.

Currently, newcomers represent one in every five homebuyers (21%) nationally. If the current international migration level is maintained, Canadian newcomers are expected to purchase 680,000 homes over the next five years. Newcomers are likely to be a family with children (31%), a student (25%) or a sole applicant (20%).

Eighty-six per cent of newcomers see real estate as a good investment. Most newcomers arrive as financially fit, skilled immigrants and our study shows 75 per cent arrive with savings to help purchase a property. Despite this desire to purchase a home, the homeownership rate of newcomers is 32 per cent and the average duration to purchase a home is three years. However, those who arrive as a family with children have a much higher homeownership rate (46%). Of those who own a home, 44 per cent pay less than 30 per cent of their total income on their mortgage.

Canadian newcomers are expected to purchase 680,000 homes over the next five years

Interestingly, 82 per cent of respondents remain in the region of their first residence. For those who relocate to a new region, a better job is cited as the most popular reason for moving (41%), followed by lifestyle (13%), and housing affordability (12%).

How do newcomers find their REALTOR®? Our study shows that the majority of newcomers found their REALTOR® through a referral (51%). Other top choices were an online listing search (20%), online advertising (13%), and at an open house (12%).

As the best real estate professionals in the industry, you have the opportunity to guide newcomers through the homebuying process and make their Canadian dream of homeownership a reality. Keep this demographic top of mind when creating your sales and marketing plans.

75% of Canadian newcomers arrive with savings to help purchase a home

Royal LePage provides thought leadership and industry advocacy through its many studies, reports and releases. It is the go-to resource for media nationwide. Make sure to visit rlp.ca/mediaroom for more interesting statistics and information on Canadian newcomers, and other important homebuyer and homeseller segments.

Learn more

rlp.ca/newcomer_demand