Overview

• The Canadian government plans to reduce immigration levels from 485,000 to 365,000 by 2027, aiming to stabilize the housing market.
• The Parliamentary Budget Officer estimates this will reduce the housing supply gap by 534,000 units, nearly half of the current projection.
• Despite the cuts, Canada is still expected to face a shortfall of 658,000 housing units by 2030, necessitating the construction of 2.3 million homes.
• The PBO warns of risks in achieving these reductions due to uncertainties in non-permanent resident outflows.
• Opposition parties and experts express concerns over the potential negative impacts on population growth and economic factors.