Rising Rent, Living Costs Spark Exodus Among Canada’s Immigrants

In recent months, a growing number of immigrants in Canada are reconsidering their decision to settle in the country, driven by the escalating cost of living and rental shortages. According to Reuters, this shift signals a reversal of the trend that saw Canada’s population surge at its fastest pace in over six decades.

While Prime Minister Justin Trudeau has utilized immigration to combat the challenges of an aging population and economic growth, a rising wave of emigration is now evident. Official data reveals that 42,000 individuals departed Canada in the first half of 2023, adding to the 93,818 who left in 2022 and the 85,927 exits in 2021.

The Institute for Canadian Citizenship’s recent report indicates that the rate of immigrants leaving Canada hit a two-decade high in 2019, and despite a temporary decrease during the pandemic, emigration is on the rise again, posing a concern for policymakers.

For a nation built on immigration, a growing trend of people leaving Canada jeopardizes one of Prime Minister Trudeau’s signature policies, granting permanent residency to a record 2.5 million individuals in eight years.

Reuters interviewed several individuals who have either left the country or are contemplating doing so due to the high cost of living. One respondent, Cara (pseudonym), a 25-year-old refugee from Hong Kong, shared her struggle of paying 30% of her monthly take-home salary, approximately C$650 ($474), for a single-room basement apartment in Toronto.

Emigration as a percentage of Canada’s overall population currently stands at about 0.09%, a small number, but legal experts and immigration consultants caution that an uptick could tarnish Canada’s reputation as a favored destination for newcomers.

Rising housing costs are identified as the primary reason for immigrants considering alternative countries. In Canada, on average, about 60% of household income is required to cover home ownership costs, reaching 98% in Vancouver and 80% in Toronto, according to a September report by RBC.

The impact of rapid immigration on the housing shortage is acknowledged by Phil Triadafilopoulos, a political science professor at the University of Toronto. Last month, in response to the housing market pressures, Prime Minister Trudeau’s government capped its target for new residents at half a million per year starting in 2025. However, some, like Justinas Stankus, a doctoral student from Lithuania, see this as too little, too late, and are contemplating relocation to Southeast Asia where living costs are lower.

As Canada grapples with retaining its appeal for newcomers, individuals like Cara express a sense of feeling trapped and express a desire to leave whenever the opportunity arises.