Canada’s population experienced a growth of over 430,000 during the third quarter, marking the fastest pace since 1957, according to Statistics Canada’s October 1 population estimates released on Tuesday. The total population now stands at over 40.5 million, with growth in the first nine months of 2023 surpassing the total growth in any previous full year, including the record set in 2022.
The significant growth has been attributed to international migration, with approximately 313,000 non-permanent residents arriving in the country from July to September. Statistics Canada notes that these non-permanent residents were mainly holders of work and study permits, with a smaller number being refugee claimants.
Experts have cautioned that the rapid pace of population growth in Canada is putting pressure on housing affordability, especially as the country struggles to increase home construction. Bank of Canada deputy governor Toni Gravelle addressed the impact of immigration on the economy and inflation in a recent speech. While acknowledging the economic benefits of increased immigration, Gravelle highlighted the challenges, including heightened demand for housing amid zoning restrictions and a shortage of construction workers.
Gravelle stated, “This surge in demographic demand, coupled with the persistent structural supply issues, could explain why rent inflation continues to climb in Canada. It also helps explain, in part, why housing prices haven’t fallen as much as we had anticipated,” during a speech to the Windsor-Essex Regional Chamber of Commerce.
Polls indicate that Canadians are expressing concerns about the impact of immigration on infrastructure and services. In a recent Leger survey, about three-quarters of respondents agreed that the influx of immigrants is straining both the housing market and the healthcare system. Comparing data from March 2022, the percentage of Canadians expressing a desire for the country to accept more immigrants has decreased from 17% to 9%.
