Key Takeaways
• Canada will cap new permanent residents below 1% of the population annually after 2027.
• Temporary residents must drop from 7.3% to below 5% of the population by 2028.
• The government will invest $25 billion to stimulate new housing development under the Build Canada Homes plan.
Mark Carney is now the Prime Minister of Canada 🇨🇦 after the Liberal Party’s win in the April 28, 2025, federal election. Since taking office, he has brought major changes to how the country manages people coming to live and work in Canada 🇨🇦. At the center of his policies are new rules to limit the number of immigrants, with the goal of fixing problems in Canada’s 🇨🇦 housing market and making life better for both new arrivals and people already living in the country.
Mark Carney’s Commitment to Easing the Housing Crunch
During his campaign and in his first weeks as Prime Minister, Mark Carney talked a lot about how fast-changing immigration policies had let too many newcomers arrive at once. According to Carney, this put too much pressure on housing, healthcare, and other public services. In a press conference held on May 3, 2025, he said, “immigration caps will remain in place until we’ve expanded housing, and we’ve reabsorbed the levels of immigration that have happened in our country during the pandemic” (Source: NDTV).
The main goal is to make sure that as more people come to Canada 🇨🇦, there is enough housing for everyone, and services like hospitals and schools can keep up. The government sees these immigration caps—which are limits on how many people can come—as a smart way to solve the housing crisis. Carney made it clear that these caps are not meant to stop immigration forever. Instead, they are a short-term fix to help build more homes and catch up with recent population growth.
The Details: Canada’s Immigration Caps
Carney’s government has set two main targets for immigration levels:
- Permanent Resident Limits:
The plan is to keep the number of new permanent residents—the people allowed to settle in Canada 🇨🇦 for good—at less than 1% of the total population each year after 2027. For comparison, here are the current planned numbers:- 395,000 newcomers in 2025
- 380,000 in 2026
- 365,000 in 2027
These numbers are already under the 1% mark, following Canada’s existing Immigration Levels Plan. The cap aims to make it easier for new arrivals to find good housing and become part of the community.
- Fewer Temporary Residents:
The government also wants to bring down the number of temporary residents—these include international students and people with work permits. Right now, about 7.3% of Canada’s 🇨🇦 population are living in the country on a temporary basis. Carney’s goal is to cut this to below 5% by the end of 2027 or 2028. The thinking is that too many temporary residents are making the housing crisis worse, especially in big cities where rental prices keep going up.
Building More Homes: The “Build Canada Homes” Plan
Fixing the housing crisis is not just about slowing down the flow of immigrants. Mark Carney’s team has also promised to build more homes and make it easier for Canadians 🇨🇦 to buy them. The “Build Canada Homes” plan includes several big steps:
- $25 Billion for Developers:
The government will spend $25 billion to help private developers construct more houses and apartments. The hope is that this money will lead to thousands of new places for people to live, helping to solve the housing crunch. -
GST (Tax) Cuts on New Homes:
For anyone buying a new house priced between $1 million and $1.5 million, the government will cut sales taxes. This could save some buyers up to $50,000, making homeownership more affordable—especially for young families and first-time buyers. -
Training More Workers:
The government plans to grow construction training and trades programs. By training more people as carpenters, electricians, and plumbers, they hope to solve shortages in the housing industry. More workers mean more homes built, faster.
These changes work together. As immigration caps slow down the arrival of newcomers, the housing plan ramps up new home building, so that when more people can come later, there will be enough places to live.
Immigration Remains Key to Canada’s 🇨🇦 Future
Although Mark Carney has announced limits, he still says immigration is important for keeping Canada’s 🇨🇦 economy strong. According to Carney, the new approach is not “anti-immigration.” The real aim is to make sure that new arrivals get the support they need, and the country can keep growing in a healthy way.
Carney’s team has stressed these main priorities:
- Focus on Skilled Workers:
Rather than letting in only large numbers, the plan is to bring in people with the skills Canada 🇨🇦 needs most—like those who can help build homes, teach, or work in healthcare. -
Convert Temporary to Permanent:
The government now wants to turn more temporary residents—such as long-term international students and workers—into permanent residents. It’s easier for those already living, working, and studying in Canada 🇨🇦 to settle long-term, rather than bringing in even more new arrivals. -
Attracting Top Talent:
Carney has talked about seeking “the best talent in the world to build our economy.” This means Canada 🇨🇦 will still welcome engineers, nurses, scientists, and entrepreneurs, but wants to avoid overwhelming the housing market and social services.
Analysis from VisaVerge.com suggests that by finding a better balance between how many people come to Canada 🇨🇦 and how quickly homes and services can be built, the government is trying to create a “softer landing” for everyone. This means slower growth in numbers in the short term, but stronger support for all in the long run.
The Impact: Who Will Feel These Changes?
These new immigration caps and housing plans will touch the lives of many groups:
- New Immigrants:
Fewer spots may mean longer waits for those hoping to move to Canada 🇨🇦. Some may be asked to wait until more homes are built and services expand. Those already in the country on temporary permits may have a better chance of staying for good. -
Foreign Students and Temporary Workers:
Since the government will lower the number of people with study and work permits, many schools and companies may see fewer international students and workers. Some students may feel less sure about being allowed to stay after finishing their studies. -
Employers:
Canadian 🇨🇦 companies that rely on temporary workers—like those in farming, food processing, or construction—could face worker shortages in the short term. The hope is that training programs will keep these fields strong. -
People Looking for Homes:
As the government aims to build more homes and slow down the number of people moving to Canada 🇨🇦 right away, prices may begin to cool, making it easier for families to buy or rent. -
Local Communities:
Slower growth gives cities and towns more time to grow schools, hospitals, and transit. This could help keep services running smoothly, even as the population grows in the future.
Differing Views and Debate
Whenever a government talks about new immigration caps, there are mixed opinions. On one hand, some Canadians 🇨🇦 worry that letting in too many people makes rents and house prices too high, and puts extra stress on health and social services. On the other side, many business leaders, schools, and advocates say that immigrants are vital for Canada’s 🇨🇦 success.
Mark Carney has responded to these worries by calling these changes “temporary” and “necessary,” saying the government must “live up to the bargain with new immigrants” (Source: NDTV). He believes that until enough new homes and services are in place, it is fair to limit numbers. Some critics think the limits could slow down the economy and make it harder for Canada 🇨🇦 to attract skilled workers. Others say that taking a pause is the best way to keep the country livable for everyone.
Historical Background: How Did We Get Here?
Canada 🇨🇦 is known for being open to immigrants. Over the last decade, policies made it easier for people from around the world to move to Canada 🇨🇦 for work, study, or family reasons. With the COVID-19 pandemic, many people who arrived on temporary permits—like students or workers—were also encouraged to stay for good. This pushed population growth to its fastest pace in modern history.
But this sudden surge outpaced the building of new homes. A rising population, mixed with already low numbers of houses, led to a spike in prices and made it tough for everyday families to find affordable places to rent or buy. Hospitals, schools, and transit systems also started to feel stretched. This created the housing crisis Canada 🇨🇦 faces now, leading to the new policies set by Mark Carney.
What’s Next? Key Points for the Future
- Immigration caps will last until Canada 🇨🇦 can build enough homes and services to catch up.
- The government will support home building by giving money to developers, cutting taxes, and training workers.
- There will be fewer permits for temporary students and workers, but more opportunities for those already in Canada 🇨🇦 to get permanent status.
- Skilled workers and top talent are still welcome—but only as fast as homes and services allow.
- Everything is aimed at solving the housing crisis, so that all Canadians 🇨🇦, both new and long-time residents, have a fair shot at a good life.
For anyone thinking about moving to Canada 🇨🇦, or those already in the country on a temporary basis, it is important to stay updated on these changes. The federal government will be updating and posting its official immigration levels plan as new policies are rolled out, making it possible for families and employers to plan ahead.
Conclusion
Mark Carney has chosen to tackle Canada’s 🇨🇦 housing crisis not by stopping immigration altogether, but by slowing it down long enough for home-building and services to catch up. His plan matches immigration caps with major investments in housing and construction. While debate continues over whether this is the right move, Carney’s government insists that these steps will help Canada 🇨🇦 remain a welcoming, livable country for old and new residents alike. By aiming for balance, not just growth, Carney hopes to make sure that every newcomer can find a home and become part of the community—making the promise of Canada 🇨🇦 a reality for all.
Learn Today
Permanent Resident → A person authorized to live and work in Canada indefinitely, but not a citizen; eligible for most rights and benefits.
Temporary Resident → A person allowed to stay in Canada for a limited period, such as students or temporary workers.
Immigration Caps → Government-imposed limits on the number of newcomers allowed into the country each year.
Build Canada Homes → A federal plan investing $25 billion to increase housing supply and make ownership more attainable.
GST (Goods and Services Tax) → A federal sales tax applied on most goods and services purchased in Canada, including new homes.
This Article in a Nutshell
Canada’s new Prime Minister Mark Carney is limiting immigration and boosting housing investment to solve a worsening housing crisis. Immigration will be capped, especially for new and temporary residents, until homes and services expand. Billions support construction and first-time buyers, aiming to balance population growth, affordability, and economic stability.
— By VisaVerge.com
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