1: Canada has the fastest population growth in the G7
A significant proportion of Canada’s population growth is being driven by immigration. Many of these immigrants are highly skilled and help propel the economy. However, massive net immigration also creates significant demand for already overpriced real estate.
Source: NBF Economics
As you can see in the chart below, housing prices in Canada are rising faster than people can save. Last year alone, the benchmark price rose $160,000. In other words, someone saving for a down payment would need to save more than $160,000 to make any progress.
2: What to Watch: China dangerously dependent on real estate
China has been pouring money into residential construction for years, with the sector now accounting for 15% of the nation’s economic activity. Developers, banks, property owners and even the government are all highly connected to the success or failure of the property sector.
Any major disruption to China’s property market would likely have significant economic and geopolitical repercussions for the entire world.
Regarding the first point, I'm wondering if you have thoughts on why this level of immigration might be advantageous economically - enough to offset the rising costs of housing and the potential negative impact of a correction or crash on Canada, specifically?