Question Period Note: Housing and Immigration

Canada is experiencing unprecedented housing pressures, which requires collaboration between all levels of government, including provinces, territories and municipalities, and the private sector to address the underlying issues and ensure that Canadians and newcomers have access to housing.

• Immigration must adapt to Canada’s evolving priorities. As we address the growing demand for housing, immigration will remain essential in helping employees bridge critical skills gaps in the construction sector.
• Through existing measures like category-based selection, IRCC is helping bring in construction workers to put shovels in the ground and build new homes when qualified Canadians are not available.
• The Government of Canada also intends to introduce a number of new measures to support Canada’s construction industry.
• These measures will provide employers with the skilled workers needed to accelerate construction projects, and support Canada’s coordinated efforts to address growing housing demands.

• Budget 2024 included a number of housing investments that aim to stimulate innovative construction, protect renters, and train and recruit the next generation of skilled trades workers. Highlights include:

o Canada Housing Infrastructure Fund
• $6 billion over 10 years to launch the fund, to accelerate the construction and upgrading of housing infrastructure, and to improve densification.

o Housing Accelerator Fund
• $400 million over four years, in additional investments to top up the Housing Accelerator Fund to help fast track 12,000 new homes in the next 3 years.

o Apartment Construction Loan Program
• $15 billion in new loan funding for the Apartment Construction Loan Program to build more rental apartments.

o Foreign Credential Recognition Program
• $50 million over 2 years to streamline foreign credential recognition within the construction and health care sectors.

o Extending GST relief to student residences
• $19 million over five years, and $5 million per year ongoing, for the removal of GST on new student residences for not-for-profit universities, public colleges, and school authorities to alleviate pressures to student housing projects.

o New Rapid Housing Stream
• $976 million over 5 years and $24 million ongoing to launch the new stream under the Affordable Housing Fund, to build deeply affordable housing, supportive housing and shelters for the most vulnerable.

o Federal Homelessness Strategy
• $1.3 billion over four years in additional investments for Canada’s Homelessness Strategy to support emergency funding over the winter for those experiencing or at risk of unsheltered homelessness, including those living in encampments.

• The Minister of Housing, Infrastructure and Communities released Canada’s Housing 2030 Plan to the public on April 12, 2024 to help respond to the housing crisis. The plan contains three themes: (1) Building more homes; (2) Making it easier to own or rent a home; and (3): Helping Canadians who can’t afford a home.
• According to Statistics Canada, in 2023, Canada experienced its highest annual population growth rate since 1957, at 3.2%. Most of Canada's population growth rate stemmed from temporary immigration. Without temporary immigration, Canada's population growth would have been almost three times less (+1.2%).
• Comprised of the Federal government, unions and industry leaders, the tripartite advisory council will play a critical role in helping the construction sector attract the workers they need and are unable to find in Canada, while ensuring that these workers are protected, receive competitive wages and do not adversely impact Canadians working in this sector. As Canada faces economic uncertainty in the face of tariff threats, it will also be essential shaping an approach that sustains a strong construction sector.
• IRCC introduced a temporary measure to allow foreign apprentices in eligible construction trades to complete their studies without a study permit, effective February 26th, 2025. This allows apprentices to gain the valuable skills they need to contribute to infrastructure projects more quickly.

Housing, Immigration Planning

• The Strategic Immigration Review report announced a commitment to a broader approach to immigration levels planning to better align with investment in housing, among other areas.
• In January 2024, a cap on most study permit applications was established through Ministerial Instructions, with each province and territory receiving a set number of spaces under the cap. Applicants must submit a provincial or territorial attestation letter with their study permit application. Provinces and territories are responsible for distributing provincial or territorial attestation letters to meet their allocations in a way that meets their needs.

• On March 21, 2024, it was announced that temporary residents will be included in the 2025-2027 Immigration Levels Plan, with a targeted decrease in the temporary resident population to 5% of Canada’s overall population by the end of 2026.

• On September 18, 2024, IRCC announced that the target number of study permits issued for 2025 is 437,000, which is a 10% reduction from the 2024 target of 485,000 permits. For 2026, the study permit target will stabilize at the same level as 2025.

• In efforts to manage temporary migration, the Minister of Employment, Workforce Development and Official Languages announced in 2024 measures adjusting the Temporary Foreign Worker Program to ensure the program continues to only be used in cases where there are no workers here in Canada that can fill the necessary role.

• The 2025-2027 Immigration Levels Plan reduces permanent resident targets. Compared to last year’s plan, the plan is
o reducing from 500,000 permanent residents to 395,000 in 2025
o reducing from 500,000 permanent residents to 380,000 in 2026
o setting a target of 365,000 permanent residents in 2027

• In addition, targets for new temporary resident arrivals have been set in line with the reduction of the share of the population to 5% by 2026: 673,650 in 2025, 516,600 in 2026, and 543,600 in 2027.

• On November 15, The Parliamentary Budget Officer released an estimate of the impact of the 2025-2027 Immigration Levels Plan on the housing supply gap in Canada. PBO estimates that the plan will reduce the gap in 2030 by 534,000 units (45 per cent), compared to IRCC’s estimates of a reduction of 670,000 units.
o The difference between estimates reflects several factors including assumed age, region, different time horizons and household structures.

Facilitative pathways for construction workers
• Category based selection was launched in Express Entry in June 2023; Between June 2023 and October 2024, IRCC invited 6,100 candidates through four trade category invitations rounds to apply for permanent residence. Individuals with work experience in the trades will continue to be prioritized in 2025.

• Temporary Foreign Workers: From January to September 2024, IRCC issued over 30,266 work permits to temporary foreign workers in construction sector occupations, with the majority coming under the TFWP. As well, construction is a sector exempted from the 20% cap on the proportion of temporary foreign workers that can be hired in low-wage positions at a specific work location.

• Provincial Nominee Programs (PNP): IRCC supports provinces and territories in developing targeted initiatives to fill critical labour market needs in the construction sector to support housing development. For instance, in 2023, IRCC officials worked closely with Nova Scotia in designing the Critical Construction Worker Pilot under their PNP, which was launched in October 2023.

• The Atlantic Immigration Program is another regional economic immigration program designed with the needs of key sectors in mind. This employer-driven program has flexibilities incorporated to respond to critical labour market needs, such as the construction sector.

• The Rural Community Immigration Pilot (RCIP) and the Francophone Community Immigration Pilot (FCIP) were launched on January 30, 2025, based on lessons learned from the Rural and Northern Immigration Pilot (RNIP). These pilots are helping 18 rural and francophone minority communities across 7 provinces attract and retain newcomers with the right skills to fill critical jobs, including in the construction sector.

• Global Skills Missions: IRCC will organize global skills missions in collaboration with government representatives, employers and stakeholders, to recruit the talent Canada needs.

Regularization of Undocumented Workers

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• A pathway for up to 6,000 out-of-status construction workers was announced on March 7, 2025.
• Between January 2, 2020 and December 31, 2024, the Out-of-Status Construction Workers in the Greater Toronto Area Public Policy provided up to 1,000 undocumented construction workers and their families with a path to permanent residence. As of January 2025, 1,075 individuals have been admitted under this pathway, including 460 principal applicants and 615 dependents.

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