The Canadian government’s plan to reduce the number of immigrants entering the country could impact B.C.’s housing affordability.
Prime Minister Justin Trudeau announced on Thursday that the federal government is cutting its immigration target to below 400,000 for the next three years.
According to Tom Davidoff, a housing expert and UBC associate professor at the Sauder School of Business, the provincial housing supply has been unable to match population growth.
“The reason we’ve seen prices rising in the last decade is not only a very rapid increase in immigration, but also housing supply failing to keep up,” said Davidoff.
Davidoff went on to say that other factors raising prices include high interest rates and concerns about a recession as governments try to reduce inflation.
He believes the next few years could be a rough environment for housing affordability.
“I think this reduction in immigration will make the increase in prices …