Immigration and Housing: Understanding the Connection for London Homebuyers

The Complex Link Between Immigration and Housing

Canada's housing conversation often includes discussion of immigration—and for good reason. The two are fundamentally connected. While Canada's foreign buyer ban remains in effect until 2027, permanent residents are exempt from this restriction, meaning immigration continues to influence housing demand even with the ban in place.

For those buying or selling homes in London, Ontario, understanding this relationship provides valuable context for market conditions.

The Current Policy Landscape

Canada has implemented a foreign buyer ban that restricts most non-residents and non-Canadians from purchasing residential property. However, permanent residents—those who have made Canada their home—are not affected by this restriction.

Recent data shows that new permanent residents continue to enter Canada from countries around the world. Many of these newcomers are professionals, families, and individuals who contribute to local communities and, naturally, need housing.

At the same time, Ottawa has reduced temporary resident targets, contributing to a net outflow of over 460,000 non-permanent residents over the past year. This shift has contributed to the cooling we're seeing in both housing demand and rental markets.

Why This Matters for London

London has long been a destination for newcomers to Canada. Our city offers several attractions:

Education: Western University and Fanshawe College draw international students who often transition to permanent residency after graduation.

Healthcare careers: London Health Sciences Centre and other healthcare facilities attract internationally trained professionals.

Affordability relative to Toronto: With average home prices significantly lower than the GTA, London offers newcomers more purchasing power. A family home in neighbourhoods like Oakridge, Westmount, or Lambeth typically ranges from $550,000 to $800,000—considerably less than comparable properties in the Toronto area.

Quality of life: The Thames River valley, extensive park systems like Springbank Park along Commissioners Road, and family-friendly neighbourhoods appeal to those seeking a balanced lifestyle.

What Buyers Should Consider

If you're a newcomer to Canada looking to buy in London, or an existing resident competing in the market, several factors are worth considering:

The market has moderated. After the intense competition of 2021-2022, London's market has become more balanced. Multiple offer situations still occur for well-priced properties, but buyers generally have more time to make decisions.

Mortgage qualification matters. Newcomers to Canada may face different requirements when qualifying for mortgages. Working with a mortgage broker experienced in newcomer financing can make the process smoother.

Location choices vary. Different London neighbourhoods offer different advantages:

- Masonville and Byron: Established family neighbourhoods with excellent schools and amenities - Old North: Character homes close to downtown and Western University - Talbot Village and South London: Newer construction appealing to those seeking modern finishes - Wortley Village: Walkable, community-oriented neighbourhood with local shops and restaurants

The Bigger Picture

The relationship between immigration and housing is complex. Population growth creates housing demand, which can push prices higher. But immigrants also contribute to economic growth, fill labour market needs, and enrich communities.

Policy changes—like the foreign buyer ban and reduced temporary resident targets—attempt to balance these factors. For individual buyers and sellers, the key is understanding how these broader trends affect local market conditions.

A Welcoming Community

London has a strong tradition of welcoming newcomers. Our diverse neighbourhoods, quality schools, healthcare facilities, and cultural amenities make this city an attractive destination for those building their lives in Canada.

Whether you're new to Canada and exploring homeownership for the first time, or you're an established Londoner considering your next move, understanding market dynamics helps you make informed decisions.

Your Partner in London Real Estate

At Calford & Co. Real Estate Team, we work with buyers and sellers from all backgrounds. We understand that purchasing a home is both a financial decision and a deeply personal one. If you're exploring the London real estate market, we'd love to help guide you through the process. Reach out to Nickey Calford to start the conversation.