REAL ESTATE DEMAND: 400,000 New Immigrants Per Year to Canada

If 400,000 successful people come to Canada every year, what does this mean for Canada's real estate? 

Let's look at things over a 5 year period.  

New People: 400,000 x 5 = 2,000,000

In order to balance the supply, we need to create homes for 2,000,000 people.  

I'm going to use a 30 story building for context.  How many people can live in a 30 story building?

Let's assume:
8 units/floor
2.5 people/unit

# of People
= 30 floors x 8 units/floor x 2.5 people/unit
= 600 people

A large 30 story building houses 600 people. 

2,000,000/600 = 3333 Buildings

In order to house 2,000,000 people over the next 5 years without touching the supply, Canada has to create 3333 30 Story buildings. 

Where are most of these people going?  60% of the 2,000,000 will go to Toronto and Vancouver.  

Based on 2019 stats, BC saw an increase of 70,000 people. Over 5 years, that's a 350,000 person increase.  

350,000/600 = 583 30 Story Buildings have to be built for BC alone. 

BC is known for being slow with development and has limitations of what you can actually build.  

Slow development + more demand = Prices higher

This is a good equation if you are an investor or just own your principal residence. 

The above is why I've made real estate my business and why I invest in BC.