The evidence is clear: immigration drives rental growth

Last week, I presented detailed data on how the sharp reduction in net overseas migration (NOM) in Canada, which turned negative last year, has suppressed rents.

After experiencing explosive rental growth in 2022 and 2023 amid record NOM, Canada has experienced 17 consecutive monthly declines in rents:

Canadian rents are now tracking at a 33-month low, down 7.8% from their May 2024 peak. This decline means that the typical Canadian tenant household is now paying $172 less each month on rent, saving them $2,064 per year:

The full text of this article is available to MacroBusiness subscribers

$1 for your first month, then:

$24.99 / month

$249 / year

Cancel at any time through our billing provider, Stripe

Share

About the author

Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.