Population shifts

The impact of population growth and immigration has had a significant impact on the demand for housing in Ontario.  “Strong immigration has been a huge source of housing demand over the past decade¹“, says RBC Economics.  Overall, the population of Ontario is expected to grow steadily over the next 27 years, projected to increase by 31.5%² – doing little to ease the pressure of the provinces already tight demand for housing.

Even within this growing population, specific groups will require housing to support their needs.  This includes Ontario’s aging population, as well as special needs groups.  By 2041, individuals over 60 years old are expected to make up a quarter of the entire population, “which will result in the need for more age-friendly development that can address their unique needs and circumstances.³“

COVID-related changes

According to BNN Bloomberg, a record number of Canadians left major urban centers last year amid the pandemic, led by youth and young families⁴.  While downtown areas of cities like Toronto might be seeing individuals leave, this demand is flowing over into secondary urban centres throughout southern Ontario.  One of the key drivers of this shift is the expected increase in the number of Canadians who will be working from home post-COVID than before.  This means increasing demand for housing in all of southern Ontario as individuals are willing to live further from Toronto and other less dense centres.

¹ – https://thoughtleadership.rbc.com/canadas-housing-market-headed-for-another-record-year-in-2021/?utm_medium=referral&utm_source=economics&utm_campaign=housing
² – https://www.fin.gov.on.ca/en/economy/demographics/projections/#:~:text=Ontario%E2%80%99s%20population%20is%20projected%20to,million%20by%20July%201%2C%202046
³ – https://www.ontario.ca/document/place-grow-growth-plan-greater-golden-horseshoe
⁴ – https://www.bnnbloomberg.ca/younger-canadians-moving-away-from-big-cities-at-record-levels-1.1548707