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Federal government’s turbo-charged immigration helping drive housing demand

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5 minute read

From the Fraser Institute

By Jock Finlayson

Unusually brisk population growth is putting considerable strain on public services and infrastructure, in part because the federal government did essentially nothing to plan or prepare for the dramatic surge in immigration that its own policies sanctioned.

According to a recent Statistics Canada report, Canada’s population has just hit the level it was previously expected to reach in 2028. That startling finding underscores the extraordinary growth of the country’s population since the pandemic, driven by record inflows of both permanent and “temporary” immigrants.

A rapidly expanding population can bring some benefits, notably by stimulating overall economic activity and providing additional workers. But it’s not an alloyed good. The number of Canadian residents is increasing faster than economic output (gross domestic product), which has translated into an unprecedented series of declines in per-person GDP over the last several quarters. Productivity is stagnant, as newcomers struggle to find their way in the economy and job market. In addition, a significant share of new immigrants don’t seek or obtain employment, dampening immigration’s contribution to the growth of economic output.

Meanwhile, unusually brisk population growth is putting considerable strain on public services and infrastructure, in part because the federal government did essentially nothing to plan or prepare for the dramatic surge in immigration that its own policies sanctioned. The “downstream” challenge of managing the pressures flowing from turbo-charged immigration falls mainly to provinces and municipalities, not faraway Ottawa.

All of this has implications for the hottest issue in Canadian politics today—housing affordability and supply. Like the rest of us, newcomers need a place to live. Immigration is the predominant source of incremental housing demand in much of the country, particularly big cities. Demand for housing also comes from the existing Canadian population, as young adults establish separate households, marriages dissolve, and people move to other communities or neighbourhoods for work, education or to retire.

Unfortunately, homebuilding has been running far behind what’s necessary to accommodate immigration, let alone meet the demand from household formation among current residents. In 1972, when the population stood at 22 million, roughly 220,000 new homes were added to the Canadian housing stock. In 2023, with a population of 40 million, housing starts were only a little higher than half a century ago.

This brings us to the Trudeau government’s multi-faceted housing plan, rolled out over the past year and finalized with great fanfare in the 2024 federal budget. The government has pledged to somehow build 3.9 million new homes by 2031—just seven years from now. This is equivalent to 550,00 housing starts per year. It’s an aspirational target, but also a patently unrealistic one.

The federal government has little control over what happens in the towns, cities and provinces where most of the policy and regulatory decisions affecting homebuilding and community development are made. Moreover, the Canadian construction sector doesn’t have the spare human resources or organizational capacity to quickly double housing starts. Even today, the construction sector’s “job vacancy rate” is higher than the all-industry average.

The year 2021 marked an all-time record for Canadian housing starts at 270,000. Starts fell over 2022-23, amid higher interest rates. This year, RBC Economics projects housing starts of 251,000, rising to 273,000 in 2025. To put it mildly, these figures are inconsistent with Ottawa’s ambitious plan to deliver 550,00 new homes per year.

We’ll likely see more and faster homebuilding over the next few years, as governments at all levels direct more money and political attention to housing. But a doubling of housing starts simply won’t occur within the Trudeau government’s politically manufactured timeline. One thing seems certain—Canada’s housing “crisis” will continue to fester.

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Business

Socialism vs. Capitalism

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Stossel TV

By John Stossel

People criticize capitalism. A recent Axios-Generation poll says, “College students prefer socialism to capitalism.”

Why?

Because they believe absurd myths. Like the claim that the Soviet Union “wasn’t real socialism.”

Socialism guru Noam Chomsky tells students that. He says the Soviet Union “was about as remote from socialism as you could imagine.”

Give me a break.

The Soviets made private business illegal.

If that’s not socialism, I’m not sure what is.

“Socialism means abolishing private property and … replacing it with some form of collective ownership,” explains economist Ben Powell. “The Soviet Union had an abundance of that.”

Socialism always fails. Look at Venezuela, the richest country in Latin America about 40 years ago. Now people there face food shortages, poverty, misery and election outcomes the regime ignores.

But Al Jazeera claims Venezuela’s failure has “little to do with socialism, and a lot to do with poor governance … economic policies have failed to adjust to reality.”

“That’s the nature of socialism!” exclaims Powell. “Economic policies fail to adjust to reality. Economic reality evolves every day. Millions of decentralized entrepreneurs and consumers make fine tuning adjustments.”

Political leaders can’t keep up with that.

Still, pundits and politicians tell people, socialism does work — in Scandinavia.

“Mad Money’s Jim Cramer calls Norway “as socialist as they come!”

This too is nonsense.

“Sweden isn’t socialist,” says Powell. “Volvo is a private company. Restaurants, hotels, they’re privately owned.”

Norway, Denmark and Sweden are all free market economies.

Denmark’s former prime minister was so annoyed with economically ignorant Americans like Bernie Sanders calling Scandanavia “socialist,” he came to America to tell Harvard students that his country “is far from a socialist planned economy. Denmark is a market economy.”

Powell says young people “hear the preaching of socialism, about equality, but they don’t look on what it actually delivers: poverty, starvation, early death.”

For thousands of years, the world had almost no wealth creation. Then, some countries tried capitalism. That changed everything.

“In the last 20 years, we’ve seen more humans escape extreme poverty than any other time in human history, and that’s because of markets,” says Powell.

Capitalism makes poor people richer.

Former Rep. Jamaal Bowman (D-N.Y.) calls capitalism “slavery by another name.”

Rep. Alexandria Ocasio-Cortez (D-N.Y.) claims, “No one ever makes a billion dollars. You take a billion dollars.”

That’s another myth.

People think there’s a fixed amount of money. So when someone gets rich, others lose.

But it’s not true. In a free market, the only way entrepreneurs can get rich is by creating new wealth.

Yes, Steve Jobs pocketed billions, but by creating Apple, he gave the rest of us even more. He invented technology that makes all of us better off.

“I hope that we get 100 new super billionaires,” says economist Dan Mitchell, “because that means 100 new people figured out ways to make the rest of our lives better off.”

Former Labor Secretary Robert Reich advocates the opposite: “Let’s abolish billionaires,” he says.

He misses the most important fact about capitalism: it’s voluntary.

“I’m not giving Jeff Bezos any money unless he’s selling me something that I value more than that money,” says Mitchell.

It’s why under capitalism, the poor and middle class get richer, too.

“The economic pie grows,” says Mitchell. “We are much richer than our grandparents.”

When the media say the “middle class is in decline,” they’re technically right, but they don’t understand why it’s shrinking.

“It’s shrinking because more and more people are moving into upper income quintiles,” says Mitchell. “The rich get richer in a capitalist society. But guess what? The rest of us get richer as well.”

I cover more myths about socialism and capitalism in my new video.

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Land use will be British Columbia’s biggest issue in 2026

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By Resource Works

Tariffs may fade. The collision between reconciliation, property rights, and investment will not.

British Columbia will talk about Donald Trump’s tariffs in 2026, and it will keep grinding through affordability. But the issue that will decide whether the province can build, invest, and govern is land use.

The warning signs were there in 2024. Land based industries still generate 12 per cent of B.C.’s GDP, and the province controls more than 90 per cent of the land base, and land policy was already being remade through opaque processes, including government to government tables. When rules for access to land feel unsettled, money flows slow into a trickle.

The Cowichan ruling sends shockwaves

In August 2025, the Cowichan ruling turned that unease into a live wire. The court recognized the Cowichan’s Aboriginal title over roughly 800 acres within Richmond, including lands held by governments and unnamed third parties. It found that grants of fee simple and other interests unjustifiably infringed that title, and declared certain Canada and Richmond titles and interests “defective and invalid,” with those invalidity declarations suspended for 18 months to give governments time to make arrangements.

The reaction has been split. Supporters see a reminder that constitutional rights do not evaporate because land changed hands. Critics see a precedent that leaves private owners exposed, especially because unnamed owners in the claim area were not parties to the case and did not receive formal notice. Even the idea of “coexistence” has become contentious, because both Aboriginal title and fee simple convey exclusive rights to decide land use and capture benefits.

Market chill sets in

McLTAikins translated the risk into advice that landowners and lenders can act on: registered ownership is not immune from constitutional scrutiny, and the land title system cannot cure a constitutional defect where Aboriginal title is established. Their explanation of fee simple reads less like theory than a due diligence checklist that now reaches beyond the registry.

By December, the market was answering. National Post columnist Adam Pankratz reported that an industrial landowner within the Cowichan title area lost a lender and a prospective tenant after a $35 million construction loan was pulled. He also described a separate Richmond hotel deal where a buyer withdrew after citing precedent risk, even though the hotel was not within the declared title lands. His case that uncertainty is already changing behaviour is laid out in Montrose.

Caroline Elliott captured how quickly court language moved into daily life after a City Richmond letter warned some owners that their title might be compromised. Whatever one thinks of that wording, it pushed land law out of the courtroom and into the mortgage conversation.

Mining and exploration stall

The same fault line runs through the critical minerals push. A new mineral claims regime now requires consultation before claims are approved, and critics argue it slows early stage exploration and forces prospectors to reveal targets before they can secure rights. Pankratz made that critique earlier, in his argument about mineral staking.

Resource Works, summarising AME feedback on Mineral Tenure Act modernisation, reported that 69.5 per cent of respondents lacked confidence in proposed changes, and that more than three quarters reported increased uncertainty about doing business in B.C. The theme is not anti consultation. It is that process, capacity, and timelines decide whether consultation produces partnership or paralysis.

Layered on top is the widening fight over UNDRIP implementation and DRIPA. Geoffrey Moyse, KC, called for repeal in a Northern Beat essay on DRIPA, arguing that Section 35 already provides the constitutional framework and that trying to operationalise UNDRIP invites litigation and uncertainty.

Tariffs and housing will still dominate headlines. But they are downstream of land. Until B.C. offers a stable bargain over who can do what, where, and on what foundation, every other promise will be hostage to the same uncertainty. For a province still built on land based wealth, Resource Works argues in its institutional history that the resource economy cannot be separated from land rules. In 2026, that is the main stage.

Resource Works News

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