Renting, Owning, Belonging: How Immigrants Use Canadian Housing

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Canada’s housing market is being significantly shaped by the growing presence of immigrants and non-permanent residents (NPRs). A recent report by Statistics Canada provides critical insights into how these groups engage with both ownership and rental housing.

Key Takeaways

• Immigrants occupy more housing units per capita than Canadian-born residents, especially in ownership markets.
• NPRs rely heavily on rental housing, with low homeownership rates.
• Newcomers transition from renting to homeownership over time, increasing their demand for single-detached homes.
• Municipality size influences housing use, with immigrants more likely to own homes in smaller towns and NPRs renting more in large cities.

Table of Contents

1. Introduction
2. Methodology and Definitions
3. Overall Housing Use: Immigrants vs. NPRs vs. Canadian-Born
4. Impact of Municipality Size on Housing Use
5. Housing Preferences by Dwelling Type
6. Trends Over Time: How Housing Use Evolves
7. Policy Implications and Urban Planning
8. Conclusion
9. References

Introduction

Canada’s population growth is increasingly driven by international migration. With record-high immigration targets and a growing number of non-permanent residents (including work and study permit holders), the implications for housing demand are profound. Yet, public debates and housing strategies often overlook the nuanced patterns in how different groups use housing.

This report—published jointly by Immigration, Refugees and Citizenship Canada (IRCC) and Statistics Canada—fills that gap by providing a detailed analysis using data from the 2021 Census. It quantifies the housing occupancy per 1,000 individuals across different residency groups and explores how time in Canada and municipal context influence housing decisions.

Methodology and Definitions

The analysis is based on Canada’s 2021 long-form census and focuses on private households.

Key Definitions

• Immigrant: A person who is or has been a permanent resident of Canada.
• Non-Permanent Resident (NPR): Individuals with a valid study or work permit, or those claiming asylum.
• Canadian-born: Individuals born in Canada and not classified under the above.

Housing Use Metric

The central metric is housing units per 1,000 individuals, distinguishing between:

• Owner-occupied dwellings
• Rented dwellings

This metric estimates the number of housing units needed to “absorb” population groups without accounting for suitability or affordability.

Overall Housing Use: Immigrants vs. NPRs vs. Canadian-Born

Ownership and Rental Use Per 1,000 Individuals (2021 Census)

Group	Owned Units	Rented Units	Total Housing Units
Canadian-born	271	126	397
Immigrants	310	151	461
Recent Immigrants	115	203	318
NPRs (Total)	41	316	357
Work Permit Holders	51	371	421
Study Permit Holders	32	260	292
Asylum Claimants	25	301	326

Insights:

• Immigrants use more housing units per capita than Canadian-born individuals due to higher participation in both rental and ownership markets.
• NPRs, particularly work permit holders, heavily rely on rentals, reflecting transitional or temporary status.
• Recent immigrants have lower housing use, but this increases over time as they settle and purchase homes.

Impact of Municipality Size on Housing Use

Housing patterns vary greatly depending on the size of the municipality. Here’s how:

Population Size	Group	Owned Units	Rented Units
500,000+	Immigrants	280	184
	NPRs	38	334
	Canadian-born	215	163
100,000–499,999	Immigrants	330	117
	NPRs	41	300
10,000–99,999	Immigrants	358	109
	NPRs	51	274
<10,000	Immigrants	396	91
	NPRs	61	269

Summary:

• Ownership rates increase in smaller towns: Immigrants take advantage of lower housing costs.
• NPRs rent at high levels in all municipality sizes, suggesting they are less mobile toward ownership regardless of local affordability.

Housing Preferences by Dwelling Type

How do different groups use various housing types?

Dwelling Type	Group	Owned Units	Rented Units
Single-detached	Immigrants	182	15
	NPRs	16	30
	Canadian-born	205	22
Semi-detached/Row	Immigrants	54	16
	NPRs	6	22
Apartment	Immigrants	72	119
	NPRs	19	262

Insights:

• Immigrants show strong preference for single-detached and row housing in ownership.
• Apartments dominate the NPR rental market, accounting for the vast majority of their housing use.
• As NPRs rarely buy homes, their pressure on apartment rentals is substantial.

Trends Over Time: How Housing Use Evolves

A unique aspect of the study tracks housing use by years since immigration.

Chart: Owned vs. Rented Units Over Time

• Years 0–5: High rental use, low ownership.
• Years 6–10: Transition period; ownership begins to rise.
• Years 11–15+: Ownership surpasses rental use; total housing use per capita exceeds that of Canadian-born individuals.

Years Since Immigration	Owned Units	Rented Units	Total
Year 1	45	216	261
Year 10	240	128	368
Year 15	285	131	416
Year 20	327	137	464

Interpretation:

• Immigrants move from extended households to nuclear households as they gain financial stability.
• Homeownership becomes the dominant mode of housing use beyond 10 years in Canada.

Policy Implications and Urban Planning

The findings highlight critical challenges and opportunities for Canadian housing policy.

📌 Short-Term Challenges:

• Increased rental demand in large cities, especially from NPRs.
• Affordability issues for new immigrants, limiting early access to homeownership.

🧱 Long-Term Considerations:

• Immigrants’ growing transition to homeownership will pressure suburban and small-town housing markets.
• NPRs’ consistent rental reliance demands robust planning for purpose-built rentals, especially in metro areas.

📍 Policy Suggestions:

• Encourage affordable ownership projects in small to mid-sized cities.
• Expand rental construction incentives for developers in high-immigration zones.
• Create housing pathways for NPRs who transition to permanent residence.
• Integrate immigration forecasts into municipal housing plans.

This in-depth analysis provides a clearer picture of how immigrants and non-permanent residents shape Canada's housing landscape.

• Immigrants surpass Canadian-born individuals in per capita housing use, especially after 10–15 years in the country.
• NPRs rent intensively and remain almost absent from ownership markets.
• Municipality size and dwelling type significantly influence the kind of housing each group uses.
• Over time, immigrants shift from rental to ownership, driving long-term demand for single-detached homes.

With immigration targets remaining high and NPR volumes increasing, Canadian housing policies must evolve to address both immediate rental needs and long-term ownership trends. Future planning that reflects these insights will be key to maintaining housing affordability, availability, and community stability.

References

• Statistics Canada (2025). Housing use of immigrants and non-permanent residents in ownership and rental markets. Catalogue no. 36-28-0001.
• Allen, J., Amano, R., Byrne, D., & Gregory, A. (2009). Canadian city housing prices and urban market segmentation. Canadian Journal of Economics.

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