Last week, we talked about how to survive the current tenant’s market.
The major cause in the sharp drop in demand is obviously the drastic downturn in immigration.
Last year 2019, we had around 340,000 immigrants.
Earlier this year, the government announced an aggressive 3 year immigration plan.
We planned to welcome another 341,000 immigrants in 2020.
Then 351,000 in 2021.
And 361,000 in 2022.
That’s over 1 million immigrants in 3 years.
Well, of course, nothing goes as planned in 2020.
We’ve only had around 130,000 immigrants so far this year, that’s only 38% of the originally planned number.
You see, a killer drop in immigration, international students and travellers, plus a record high number of new condo completions this year, drag us to a struggling rental market.
In the meantime, we can only survive the current rental market with the “Love me, hate me, there’s no money in the middle” strategy.
If you don’t know what this strategy is, make sure you watch last week’s video at the link below.
The good news is…
A few days ago, the government just announced a vaccine for our rental market.
Let’s go through it step by step.
#1 The History of Canada’s Immigration Levels
Canada was born on July 1, 1867.
Let me show you a chart of our immigration numbers from 1867 to 2019.
Immigration Numbers: 1852 to 2014
Immigration Numbers: 2015 to 2019
How many times have we had over 300,000 immigrants in our history?
Only 5 times.
What about over 400,000?
Just once in 1913 with 401,000 immigrants.
And we’ve never come close to that figure ever since.
#2 The New 3-Year Immigration Levels Plan
Last Friday, the government made a huge announcement on the 2021 to 2023 Immigration Levels Plan.
It will be the most aggressive ever in history.
2021: 401,000 immigrants
2022: 411,000 immigrants
2023: 421,000 immigrants
That’s over 1.2 million immigrants in the coming 3 years!
What does a high level of immigration mean?
We have all seen the effect on the housing market in the past few years.
So what about the most aggressive level of immgration in history?
I think you can easily do your own predictions.
If you are a struggling landlord right now, hang in there with the love me hate me strategy, we could see a major recovery in the rental market as early as next spring.
If you are seeing good investment opportunities in the market right now, they might disappear very soon, so be decisive and make your call, don’t be stuck in the middle.