demographics
THE DOWNTURN IN IMMIGRATION IN 2020 WILL BE TRANSITORY
The gap in migration to Metro Vancouver in 2020 may provide some housing demand relief in the short-term, but our economy needs them more than ever.
In addition to immigration boosting our labour force and supporting economic growth, it adds to our diversity as a country, as a province, and as a region. It brings with it new perspectives, greater tolerance and understanding, and new ways of exciting our five senses. Too bad then that 2020 played out the way it did demographically. Immigraiton to Metro Vancouver was greatly reduced in 2020: though we welcomed as many immigrants to this region as Alberta did to its entire province, our most recent immigraiton inflow was 43% below 2019’s and 30% below the average from the past five years.
Naturally, this has had differential impacts within the region, with the cities of Vancouver and Surrey—the two largest destinations for immigrants in the region, accounting for 71% of Metro Vancouver immigration over the past five years—seeing a 44% and 49% reduction, respectively, in the number of new immigrants in 2020. The rest of the region saw immigration fall by 38% between 2019 and 2020. This may provide some relief for the housing market in the short-term—bring some balance to the rental market and reducing ownership demand relative to supply, at the margin— but the longer-run benefits of normalized immigration flows will far outweigh any near-term relief.
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