Question Period Note: Housing and Immigration

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

• Returning to sustainable and predictable immigration levels, along with prioritizing permanent residence for those already living in Canada, helps ease pressure on housing by moderating population growth.
• Slower population growth reduces the amount of new housing needed to meet demand, allowing supply to catch up and narrowing the housing shortages.
• We are also prioritizing economic immigration and attracting the best talent in the world to fill critical labour gaps, including in construction.

If pressed:
• In fact, immigration is critical in addressing skills gaps in the construction sector when Canadians are not available. Immigrants account for 23% of all general contractors and builders in the residential construction sector.

• Priority 4 of the Government’s Mandate Letter is: Making housing more affordable by unleashing the power of public-private cooperation, catalysing a modern housing industry, and creating new careers in the skilled trades.

• On September 14, 2025, the government launched Build Canada Homes—a new federal agency that will build affordable housing at scale. BCH's mission is to build and finance more affordable homes, while catalysing a new housing industry. BCH will focus primarily on non-market housing, supporting a mix of income needs as part of a national effort to double housing construction, restore affordability, and reduce homelessness.

• With an initial investment of $13 billion over five years on a cash basis, starting in 2025-26, Build Canada Homes will deploy capital to supercharge the housing industry. In addition, the Build Communities Strong Fund will invest $51 billion over 10 years, followed by $3 billion per year ongoing, to revitalise local infrastructure.

• IRCC plays an important but complementary role in addressing housing supply issues, by bringing in workers needed to help address labour market shortages in the skilled trades sector, and workers with needed skills in new and innovative construction techniques.

• At the same time, immigration contributes to increased demand for housing. IRCC considers demands and pressures on Canada’s housing market, among a number of macroeconomic trends, when developing targets for the annual Immigration Levels Plan, which helps ensure that targets for temporary and permanent residents are sustainable and aligned with Canada’s domestic capacity, including housing.

• In February 2025, IRCC launched a temporary measure to allow certain registered construction apprentices with valid work permits to complete their studies without needing a study permit. This streamlines the permit process and allows apprentices to gain skills they need to contribute to infrastructure projects more quickly.

• As of October 1, 2025, IRCC no longer directly houses asylum claimants at hotels, as the Department moves towards supporting the implementation of more sustainable long-term solutions through the Interim Housing Assistance Program (IHAP).

• Since 2017, Canada has invested approximately $1.7 billion through IHAP, and beginning in 2026–2027, funding will be tied to provincial and municipal commitments to sustainable and cost-effective housing solutions.

Housing, Immigration Planning

• The 2026–2028 Immigration Levels Plan:
o reduces temporary resident targets from 673,650 in 2025 to 385,000 (or approximately 43%) in 2026 and 370,000 in 2027 and 2028.

o stabilizes permanent resident admission targets at 380,000 per year for three years, down from 395,000 in 2025, while increasing the share of economic migrants from 59% to 64% in 2027 and 2028.

• These targets support Government commitments to reduce Canada’s temporary population to less than 5% of the population by the end of 2027 and stabilize permanent resident admissions at less than 1% of the population beyond 2027.

• Additional measures designed to achieve the less than 5% non-permanent resident target include:

o Managing International Student Volumes: IRCC introduced a study permit cap through Ministerial Instructions in January 2024, with each province and territory receiving a set number of spaces under the cap. Most applicants must include a provincial or territorial attestation letter with their study permit applications, which the provinces and territories distribute in a way that meets their needs.

o Post-Graduation Work Permit (PGWP) reform: In 2024, IRCC updated the PGWP program by introducing minimum language requirements and targeting in-demand fields of study. The PGWP is now better positioned to create a pipeline of student graduates whose skills align with Canada’s long-term labour needs.

o Limiting work permits for spouses of temporary residents: IRCC has tightened work permit eligibility for spouses of international students and temporary foreign workers.

• According to Statistics Canada, Canada’s population grew by 0.1% in the second quarter of 2025, marking the slowest Q2 growth since 2020 and highlighting the continued impact of reduced temporary and permanent immigration levels.

• While population growth is a key factor in housing affordability, other challenges – such as labour shortages, low productivity, investor activity, material costs, and regulatory delays – also play a role. Addressing the crisis will require a mix of policy tools, including financing reforms, tax changes, and continued support for rental housing.

• Recent immigrants, women and temporary residents are more likely to be in core housing need (spending more than 30% of their income on shelter) than their Canadian-born counterparts.
Immigration pathways for construction workers

• In 2024, immigrants (permanent residents and non-permanent residents combined) were under-represented in construction, accounting for 23.1% of the sector’s labour force compared to 33.0% of the overall labour market. The labour market is set to remain tight, emphasizing the need for targeted immigration programs to support domestic measures to fill these labour shortages.

Temporary Work Programs

• Employers continue to leverage the Temporary Foreign Worker Program (TFWP), when qualified Canadian workers are unavailable, and the International Mobility Program (IMP) to access specialized expertise and provide surge capacity to deliver on projects. As of August 31, 2025, there were approximately 38,000 temporary foreign workers in construction sector occupations, with the majority coming under the TFWP.

• In recognition of the sector's specific needs, construction is exempted from the general 10% cap under the TFWP as well as the refusal to process policy that applies to all Census Metropolitan Areas with an unemployment rate of over 6%. These exemptions mean that construction employers anywhere can hire up to 20% of their workforce as temporary foreign workers in low-wage positions at a specific work location.

• In February of 2025, IRCC launched a temporary measure that allows certain registered construction apprentices with valid work permits to complete their studies without a study permit therefore, streamlining the work and study process.
o Note that provinces and territories are solely responsible for apprenticeship criteria and registration. While, IRCC has no jurisdiction in setting apprenticeship registration criteria, this measure supports those workers who have been registered as apprentices.

Economic Immigration Programming

• IRCC has taken significant steps to support labour market needs for construction professionals.

• From January 2023 to September 2025, over 22,600 principal applicants with a primary occupation in a construction occupations were admitted. Regional programs play a significant role and have brought in 50% of all construction workers.
o The top 5 occupations of the admitted applicants include
 Welders and related machine operators
 Material handlers
 Carpenters
 Construction managers
 Construction millwrights and industrial mechanics

• IRCC has leveraged category-based selection in Express Entry to target candidates with experience in trades occupations to meet labour needs. Between 2023 and September 2025, IRCC has invited 7,350 candidates to apply for permanent residence through four trades category-based invitations rounds. Construction workers may also be selected through other round types in Express Entry (e.g., French-proficiency).

Regional Economic Immigration Programs

• Permanent immigration options for construction workers include regional economic immigration programs such as the Provincial Nominee Program (PNP); the Atlantic Immigration Program (AIP); and Rural and Francophone Community Immigration Pilots (RCIP and FCIP), which provide regionally targeted options tailored to local labour market needs.

o Provincial Nominee Programs (PNP): The 2026–2028 Immigration Levels Plan increases admissions under the PNP, ensuring that Canada is able to attract the talent needed to respond to the distinct labour market needs of provinces and territories, such as those in construction sector. IRCC supports provinces and territories in developing targeted initiatives to fill critical labour market needs in this 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.

o 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.

o 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.

• Talent Attraction Strategy: As announced in Budget 2025, the International Talent Attraction Strategy and Action Plan will position the immigration system to meet strategic labour market needs, ensuring Canada has the talent required to drive innovation and growth in our strategic industries, while respecting immigration targets to ensure a sustainable immigration rate. The Strategy will focus on attracting the best talent in the world to build our economy and to address labour market shortages in specific sectors, including in construction and skilled trades.

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