How immigration and an aging population will affect the housing market

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What will happen to house prices in Canada?

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Of course, nobody can predict the future, but Randall Bartlett, Senior Director of Canadian Economics at Desjardins Economics Studies, has delved into a small part of what we know – immigration, our aging population, and their impact on the housing market.

If you agree that the Bank of Canada has or is almost done raising interest rates and may even start cutting rates by the end of the year, then there’s a good chance house prices will pick up again soon.

However, according to Bartlett, Canada faces a challenge unrelated to interest rates: it needs to boost immigration because of its aging population. Otherwise, Canadians will have to pay more for health care and other services. However, this also means that the country has to build housing faster than before in order to cope with immigration.