The number of immigrants in Canada has drastically increased in recent years due to
permissive government immigration policies that attract people from around the world
in search of a better life. This paper examines whether this surge in immigrants has
affected real estate prices and the rental market in one of Canada’s largest cities. The
study finds that major impacts on real estate prices stem from supply factors, such
as the number of houses built, and demand factors, such as changes in population
and income per capita. While the overall immigrant population does not significantly
affect house prices, the impact becomes evident when considering ethnic origin. This
suggests that immigration tends to cluster by ethnicity, leading to a rise in house prices
in certain areas, though this effect is not observed in rental markets.