High Housing Costs Prompt Immigrants to Leave Toronto
Toronto's Rising Housing Expenses Drive Newcomers to Relocate
Recent data from Statistics Canada reveals a concerning trend: a growing number of immigrants are leaving Toronto within five years of arrival, with high housing costs being a significant factor.
Declining Retention Rates
In 2023, only 78.3% of immigrants who arrived in Toronto five years earlier chose to stay, marking an 8% decrease from the 2013 cohort. This decline is more pronounced than in other major Canadian cities, with Montreal and Vancouver experiencing drops of 5.3 and 3.9 percentage points, respectively.
Housing Costs as a Primary Factor
The high cost of living, particularly housing expenses, is a significant factor influencing this trend. As of November 2024, the average home price in the Greater Toronto Area exceeded $1.1 million, and the average rent for a one-bedroom apartment was approximately $2,499.
Shift to Surrounding Areas
Many immigrants are relocating to more affordable nearby cities such as Oshawa, Hamilton, Windsor, Kitchener, and London, where retention rates have increased. This migration mirrors a broader trend among Canadians seeking affordable living options outside major urban centers.
Impact of Remote Work
The flexibility of remote work, accelerated by the COVID-19 pandemic, has enabled individuals to reside in more affordable locations without compromising employment opportunities, further contributing to this shift.
Implications for Toronto
The declining retention of immigrants poses challenges for Toronto's economic growth and cultural diversity. Addressing housing affordability is crucial to ensure the city remains an attractive destination for newcomers.
Conclusion
Toronto's escalating housing costs are prompting a notable number of immigrants to seek more affordable living arrangements elsewhere. To maintain its status as a welcoming and diverse city, Toronto must address housing affordability and support newcomers in establishing long-term roots.
