As Canada's population growth slows, an economic shift emerges - sh.itjust.works

> One of the clearest effects of slowing population growth has been in real estate on the rental market, said Shelly Kaushik, senior economist at BMO Capital Markets, in an interview. > > Newcomers, such as temporary foreign workers and international students, show up in very specific areas of the economy, she explained, and this is one of them. > > “One of the fastest effects we’ve seen is deceleration in rental prices across the country, but especially in places like Ontario and (British Columbia), where there is and was certainly a larger share of international students coming into the country,” she said. … > A drop in demand for rental units has also begun trickling into the overall housing market. > > Smaller properties, such as condos, are now seeing a glut of inventory of new builds, but there are hardly any buyers, because renting out the units is a riskier proposition than it was a few years ago. … > There has also been a slowdown in investor activity in the housing market, which would be a drag on home building this year, he said. > > “You’re getting this period of a real stagnation in the housing market through this year and into next year, in part driven by population,” Ercolao said. > > Canada Mortgage and Housing Corp. last month reported the agency’s six-month moving average for annual starts declined 3.5 per cent for the fourth consecutive month. > > But the effects of slowing population growth haven’t been the same across all housing types. > > “Detached (housing) market isn’t seeing as much of an effect since a very small share of newcomers to Canada aren’t really engaged in that part of the market,” Ercolao said.