Federal government overestimating immigration impact on housing gap: PBO

Parliamentary Budget Officer Yves Giroux waits to appear before appearing at the Senate Committee on National Finance, Tuesday, October 25, 2022 in Ottawa. (Adrian Wyld / The Canadian Press)

Canada's parliamentary budget officer says the federal government is overestimating the impact its new immigration plan will have on the country's housing shortage.

In October the Liberal government announced it was cutting the number of permanent residents allowed into the country between 2025 and 2027.

The PBO has previously reported that Canada needs to build another 1.3 million homes by 2030 to close the housing gap — and today it says the revised immigration plan will reduce that by 45 per cent, or 534,000 units.

The government has projected its new immigration targets will reduce that number by 670,000 units by 2027.

The Liberal plan to cut immigration levels is expected to result in a population decline by 0.2 per cent in each of the next two years.

The PBO noted that would mark the first time Canada sees an annual decline in population.

This report by The Canadian Press was first published Nov. 15, 2024.