Author: Azadeh Haidari-Garmash, RCIC
Fastest-Growing Cities in Canada
A look at the cities leading Canada's urban expansion
As one of the world's least densely populated nations, Canada is experiencing a notable demographic shift, marked by unprecedented urban growth driven largely by immigration. The country's population, currently around 40.7 million, has seen a remarkable increase, with a 3.2% rise from 2022 to 2023, representing the highest annual growth rate since 1957. This surge is primarily attributed to temporary migration, including workers and international students, as Canada continues to be an attractive destination due to its economic opportunities and high quality of life.
Shifting Demographic Patterns and Economic Growth
The Canadian government's Fall Economic Statement released in November 2023 highlights the success of Canada’s economic plan, underscored by a low unemployment rate and a notable increase in employment compared to the pre-pandemic period. With wages outpacing inflation, the International Monetary Fund projects that Canada will experience the strongest economic growth among the G7 countries in 2024. Additionally, the Organization for Economic Cooperation and Development (OECD) reported that Canada received the third-highest amount of foreign direct investment globally in the first half of the year, the highest per capita within the G7.
The Role of Immigration in Urban Expansion
Immigration stands out as a pivotal factor influencing the growth of Canadian cities, with a record number of new immigrants arriving between 2016 and 2021. The cities witnessing the fastest growth from 2018 to 2022 are marked by their economic diversity, educational opportunities, and quality of life, making them attractive to both domestic and international migrants.
Charlottetown, Prince Edward Island tops the list with a growth rate of 13.33%. Known as the "Birthplace of Confederation," Charlottetown offers economic opportunities, affordable housing, and a high quality of life, drawing in students and professionals alike.
Moncton, New Brunswick follows closely with a 12.49% increase, driven by its economic diversity and affordability. The presence of educational institutions like the University of Moncton further supports its growth.
Woodstock, Ontario, the "Dairy Capital of Canada," recorded a 12.35% growth rate. Its economy benefits from tourism and manufacturing, including significant automotive industry contributions.
Halifax, Nova Scotia experienced an 11.79% growth, bolstered by its strategic location and vibrant economy. The city’s educational institutions and government offices attract young professionals.
Whitehorse, Yukon saw a 10.54% increase, with its economy thriving on mining, tourism, and government sectors. The Yukon Nominee Program aids in attracting skilled immigrants, further fueling growth.
Urban Appeal and Opportunities
Other rapidly growing cities include Oshawa, Ontario, known for its automotive and healthcare industries, and Kelowna, British Columbia, famed for its natural beauty and affordable housing. Kitchener, Ontario stands out as a tech hub with companies like Google and Shopify, while Winkler, Manitoba offers a quieter lifestyle with lower living costs.
Barrie, Ontario and Calgary, Alberta remain attractive for their proximity to major urban centers and robust job markets. Chilliwack, British Columbia is noted for its population growth, spurred by its appealing location and quality of life.
These cities exemplify the dynamic nature of Canadian urban development and the integral role of immigration in shaping the nation's demographic landscape. As Canada continues to welcome newcomers, these cities are set to further evolve, contributing to the country’s economic vitality and cultural diversity.
