Mark Carney Unveils Immigration Strategy to Tackle Canada’s Housing Crisis

Prime Minister Mark Carney has announced a comprehensive immigration plan aimed at addressing Canada’s ongoing housing crisis. The new strategy includes capping the number of international students and temporary foreign workers, alongside significant investments in housing development to alleviate pressure on the housing market and public services.

Key Takeaways

• Immigration caps will be implemented to stabilize housing and public services.

• The government aims to reduce temporary residents to below 5% of the population by 2027.

• A $25 billion investment in housing development is part of the new initiative.

• The plan includes measures to increase francophone immigration and streamline the immigration process.

Immigration Caps To Address Housing Pressures

During a press conference on May 3, 2025, Carney outlined his government’s commitment to reducing the number of temporary residents in Canada. The current temporary resident population, which includes international students and foreign workers, stands at approximately 3.02 million, accounting for about 7.25% of Canada’s total population. The government plans to reduce this figure to less than 5% by 2027.

• Permanent Resident Targets:395,000 in 2025380,000 in 2026365,000 in 2027

Carney emphasized that these caps are necessary to ensure that immigration levels do not overwhelm housing, healthcare, and social services. He stated, "Immigration caps will remain until we expand housing and better understand immigration patterns during the pandemic."

Housing Initiatives Under “Build Canada Homes”

In conjunction with the immigration reforms, the government has launched the “Build Canada Homes” initiative, which includes:

• $25 Billion Investment: To support private developers in constructing new housing units.

• GST Cuts: Reducing the Goods and Services Tax on new homes priced between $1 million and $1.5 million, potentially saving first-time buyers up to $50,000.

• Development Charge Reductions: Lowering costs for multi-unit residential buildings, which could save around $40,000 on a two-bedroom apartment in Toronto.

• Modular Housing Development: Promoting a domestic industry for modular and prefabricated housing to speed up construction and reduce environmental impacts.

Focus on Francophone Immigration

Carney’s plan also aims to bolster francophone immigration outside Quebec, with targets set to increase from 8.5% in 2025 to 12% by 2029. This initiative is designed to strengthen French-speaking communities across Canada and address demographic and labor needs in minority francophone regions.

Revamping the Global Skills Strategy

To attract top global talent, the government intends to revamp the Global Skills Strategy, which facilitates the hiring of skilled workers from abroad. Key components include:

• Fast-Track Work Permits: Processing times for work permits will be expedited to within two weeks.

• Streamlined Recognition of Foreign Credentials: Collaborating with provinces and territories to speed up the recognition of foreign qualifications and professional experience.

Conclusion

As Canada navigates its housing crisis, Prime Minister Mark Carney’s immigration plan represents a significant shift in policy aimed at balancing immigration levels with the country’s capacity to provide housing and public services. The government’s focus on sustainable immigration practices, alongside substantial investments in housing, reflects a commitment to ensuring that both newcomers and existing residents can thrive in a stable environment.

Sources

• Carney set to further limit immigration to ease housing pressures, MPA Mag.

• Mark Carney Immigration plan: Canada Prime Minister reveal immigration plan, PR and study permits, BBC.

• Study permits, work visas under scrutiny in Canada's new immigration plan | Immigration News, Business Standard.

• How Mark Carney's Government Plans To Change Canada's Immigration Policies, NDTV.