Newcomers to Canada Achieve Higher Homeownership Rates Over Time, Study Finds
A new analysis from Statistics Canada reveals that immigrants to Canada steadily progress toward homeownership as their years of residence increase—and eventually surpass the Canadian-born population in overall housing use.
The study, conducted by researchers Haozhen Zhang and Feng Hou, examined housing use trends among new permanent residents and non-permanent residents (such as international students and temporary foreign workers), using 2021 census data.
Key Findings: The Journey from Renting to Homeownership
The study tracked housing trends over 20 years of immigrant residency, measured as housing units used per 1,000 individuals, including both owned and rented dwellings. The results show a clear upward trajectory in homeownership, with newcomers shifting from renters to owners as they settle and integrate.
Phase 1: First Five Years in Canada – Renting Dominates
In the initial years after arriving in Canada, most immigrants rent their homes. During this phase, economic constraints, the need to build credit, and lack of long-term stability limit their ability to purchase property.
At the time of landing (Year 0), immigrants use:
- 52 owned units per 1,000 people
- 269 rented units per 1,000 people
By the fifth year:
- Owned housing use rises to 147 per 1,000
- Rented housing use drops to 170 per 1,000
The combined housing use grows from 321 units at landing to 317 by year five, indicating a shift from shared accommodations to individual household formations.
Phase 2: Years 5 to 10 – Ownership Becomes the Norm
Starting in the sixth year, immigrants begin to own more homes than they rent. This turning point reflects their growing financial stability, increased access to credit, and higher job security.
By the 10th year:
- 218 units are owned per 1,000 people
- 150 are rented per 1,000 people
The total housing use climbs to 367 units per 1,000, suggesting immigrants are more likely to live in their own households than in shared rentals.
Phase 3: 10 to 15 Years – Closing the Gap with Canadian-born Population
Between years 11 and 14, immigrants’ homeownership rates continue to grow, while rental occupancy gradually declines.
By year 15:
- 267 owned units per 1,000
- 143 rented units per 1,000
Total housing use stands at 409 per 1,000, exceeding the 397-unit average among Canadian-born individuals.
Phase 4: 15 to 20 Years – Surpassing National Norms
After 15 years in Canada, immigrant households not only match but exceed the housing use patterns of native-born Canadians.
At the 20-year mark:
- 321 units are owned per 1,000 people
- 132 units are rented
Cumulative housing use reaches 454 units per 1,000 individuals, reflecting long-term settlement, intergenerational wealth building, and assimilation into Canada’s housing market.
What Explains These Homeownership Trends?
1. Household Composition and Cultural Adaptation
Newcomers often live in multigenerational households to manage living expenses. Over time, these larger units split into smaller nuclear households, increasing the number of homes used per capita.
2. Economic Integration
Most new immigrants are selected through economic immigration programs, meaning they arrive with strong education, work experience, and language skills—all of which contribute to faster financial growth and a greater likelihood of qualifying for mortgages.
3. Canadian Norms and Preferences
Over time, immigrant families begin to adopt Canadian cultural norms regarding housing independence and property ownership, further pushing homeownership rates upward.
Final Takeaway
The Statistics Canada report confirms that, while most immigrants start their Canadian journey as renters, they quickly transition to homeownership, often outperforming the Canadian-born population in housing use within two decades of arrival. This trend highlights the long-term economic contribution of immigrants and their successful integration into Canadian society.
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