IRCC Minister Transition Binder 2023: Role of Immigration in Addressing Housing Pressures

Issue

Canada is experiencing an unprecedented housing crisis, triggering a whole-of-government strategy and approach. While there has been criticism that growing numbers of newcomers are creating further pressures on housing stock and affordability (increasing demand), there is also a focus on facilitating entry of skilled construction workers in order to contribute to housing stock (increasing supply).

State of Play

• Many of the main levers to address the housing crisis rest with the private sector, provincial and territorial governments and municipalities, and with other government departments (Housing, Infrastructure and Communities Canada and the Canada Mortgage and Housing Corporation (CMHC)).
• That said, Immigration, Refugees and Citizenship Canada (IRCC) does have some levers:
  • On the demand side, growing volumes of newcomers – both permanent and temporary residents – place pressures on existing housing stock and affordability. [Redacted]
  • On the supply side, the Department is advancing a number of strategies, including the use of category-based selection for Express Entry to bring in newcomers that help address labour shortages in the construction industry and working with provinces and territories (PTs) to leverage regional economic immigration programs (e.g., the Provincial Nominee Program and the Atlantic Immigration Program). [Redacted]
  • The Department’s provision of temporary accommodations and interim housing supports for asylum claimants and recently resettled refugees is another part of the Department’s housing footprint, although it is becoming increasingly costly and does not address their long-term needs. More detailed information is provided in a separate issue brief.
• Housing availability and affordability was one of the most prolific issues raised by partners, stakeholders and the public, as part of the Strategic Immigration Review (SIR) engagement that took place from February to May 2023.

Key Messages

• Immigration plays a crucial role in addressing short-term labour shortages – in particular in the construction sector – and in attracting new skilled workers to help build future housing needs moving forward.
• At the same time, the Government is working to ensure housing services are available to newcomers, without creating additional pressures on Canada’s housing stock.
• Canada’s longer-term goal is to strategically align federal departmental mandates, planning efforts and investments on housing, so that as Canada’s population grows, its is able to absorb such growth while mitigating impacts on housing availability and affordability to newcomers and Canadians alike.

Next Steps

• The Department continues to move forward with the implementation of a number of measures, including measures to refine its levels planning process and to facilitate entry of skilled construction workers through economic pathways.
  • [Redacted]
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• A Deputy Ministers’ Committee on Housing and Homelessness has recently been struck, co-chaired by the Deputy Heads of Housing, Infrastructure and Communities Canada and the CMHC. The Deputy Minister of IRCC is an active member and part of the discussions on strategies for addressing the housing crisis, both more broadly as well as through immigration policies and programs.

Background

• The Department of Finance and CMHC estimate that 3.5 million additional new units are needed by 2030 to restore affordability based on expected population growth. This projection may now be an underestimate as demand continues to outstrip supply.
• While PTs and the private sector play a major role in housing, the Government of Canada also contributes in a number of ways. IRCC continues to engage federal partners like Housing, Infrastructure and Communities Canada and CMHC, to develop a whole-of-government approach to immigration levels planning with a particular focus on Canada’s infrastructure and housing capacity. While this work is still in early stages, the longer-term goal is to strategically align our departmental mandates, planning efforts and investments, so that as Canada’s population grows, its housing market is able to absorb such growth while mitigating impact on housing availability and affordability to newcomers and Canadians alike.

IRCC’s Role in Helping Address Housing Supply Issues:

• Express Entry (EE) (Category-based selection) - Category-based selection is an enhancement to the EE system developed to select skilled immigrants on the basis of key factors (i.e., categories) that support identified economic goals.
  • While EE already selects individuals with work experience in the skilled trades, in 2023, IRCC will use category-based selection authorities to increase the number of skilled trades people selected through EE, by prioritizing the selection of candidates with work experience in select skilled trades occupations that are expected to face structural labour shortages.
  • The trades category will comprise ten occupations for which IRCC will be issuing invitations to apply for permanent residence, and includes: carpenters; plumbers; electricians (except industrial and power system); welders and related machine operators; machine fitters; contractors and supervisors, other construction trades, installers, repairers and servicers; construction millwrights and industrial mechanics; heating, refrigeration and air conditioning mechanics; elevator constructors and mechanics; and residential and commercial installers and servicers.
  • [Redacted]
• Regional Immigration Programs - Regional programs, including the Provincial Nominee Program and the Atlantic Immigration Program, allow PTs to select immigrants that will meet targeted and specific labour market needs in their jurisdictions. Many PTs are interested in using these programs to address shortages in the construction sector as they provide flexibility to fill labour needs at all skill levels.
• [Redacted]

IRCC’s Role in Providing Temporary Accommodations and Interim Housing:

• Resettlement Assistance Program (RAP) - Is a contribution program that provides, among other things, funding to Service Provider Organizations (SPOs), to provide eligible clients with services, including temporary accommodation upon arrival and assistance in finding permanent (longer-term) accommodations, such as an apartment or access social housing supports and benefits, where eligible. Eligibility for these services under RAP is limited to Government-Assisted Refugees and select other eligible clients.
• Interim Housing Assistance Program (IHAP) - Created to cost-share with provinces (and, if necessary, municipalities) the interim housing costs they incurred starting in 2017 as irregular asylum claim volumes increased. The primary objective was to provide temporary assistance to allow provinces to adjust to new asylum pressures and to increase interim housing capacity, reducing the risk of homelessness for asylum claimants. As a result of the continued increase in asylum volumes, the program was extended a number of times.
• Temporary Accommodations for Asylum Claimants - IRCC has been providing temporary accommodations via hotels in several municipalities across Canada. Initially introduced as a pandemic measure to quarantine asymptomatic asylum claimants who did not have a quarantine plan, IRCC continued to provide temporary accommodations to backstop provincial capacity in Quebec due to the large volume of irregular arrivals at Roxham Road. [Redacted] . With the significant reduction of irregular arrivals following the implementation of the Safe Third Country Agreement Additional Protocol, IRCC is now reducing its temporary accommodations footprint for asylum claimants.
• Canada-Ukraine Authorization for Emergency Travel (CUAET) - Although the intake of CUAET applications closed on July 15, 2023, CUAET holders, Ukrainian nationals with temporary resident status in Canada, and their dependents, remain eligible to access IRCC-funded settlement services via the Settlement Program until [Redacted] . Clients with a valid CUAET visa can access temporary accommodations of up to 14 nights in federally-funded hotels until March 31, 2024.