The Canadian government’s new 2025–2027 Immigration Levels Plan signals a shift toward balanced population growth to stabilize both housing demand and the economy. Originally, immigration targets aimed to address labor shortages and an aging population, but the new approach focuses on a slower pace to support affordable housing and economic stability.

 Economic Impact

Slower population growth could affect economic growth, with nearly a 1% decline forecasted over the next three years. Reduced immigration will help balance government spending on healthcare and pensions, as an aging population places increased strain on resources. Meanwhile, economic immigration will prioritize essential sectors like healthcare and skilled trades to meet ongoing labor shortages.

Housing Market Relief

Easing the rate of new arrivals may help alleviate housing pressure by reducing demand, especially in high-growth urban areas. This shift is expected to stabilize housing prices and availability, a significant step for Canadian cities grappling with affordable housing shortages.

Temporary Resident Adjustments

Changes to student and work permits aim to control temporary resident numbers and prevent excessive pressure on housing and infrastructure while preserving room for skilled immigrants in key sectors.