In this article, we will take a look at the 15 fastest-growing cities in Canada. If you want to skip our discussion on the country’s population trends, you can go directly to the 5 Fastest-Growing Cities in Canada.
Canada ranks as the world’s second-largest country by land area, following Russia. Despite its vast area, the country’s population stands at around 40.7 million. The country maintains one of the lowest population densities globally, with only 11 people per square mile.
Since late 2020, there have been changes in demographic patterns across Canada. The fertility rate hit an all-time low of 1.33 children per woman in 2022. Meanwhile, millennials have surpassed baby boomers in population numbers. Moreover, the labor landscape has evolved in the country, with certain industries facing workforce shortages. Canada has also welcomed a substantial influx of both permanent and temporary immigrants, including workers and international students.
As of January 1, 2024, Canada’s population reached 40,769,890 individuals, marking an increase of 1,271,872 people over the last year. This increase represents the highest annual population growth rate in Canada since 1957, standing at 3.2%.
The bulk of Canada’s 3.2% population growth rate in 2023 can be credited to temporary immigration. Excluding temporary immigration and relying solely on permanent immigration and natural increase, Canada’s population growth would have been nearly three times lower, at approximately 1.2%.
In 2023, around 333,000 Canadians relocated from one territory or province to another. This marked the second-highest figure since the 1990s and the third consecutive year that interprovincial migration surpassed 300,000. Alberta experienced the most significant net gain in interprovincial migration in 2023, with an increase of 55,107 individuals. Calgary is among the fastest-growing cities in Alberta.
Even though Ontario experienced an overall decrease of 36,197 people in 2023, certain cities within the province have been witnessing population growth. Among the fastest-growing cities in Ontario are Barrie and Oshawa. Ontario is also home to Toronto, which is one of the fastest-growing cities in North America.
Meanwhile, Kelowna is one of the fastest-growing metropolitan areas in Canada. Between 2016 and 2021, Kelowna has seen an annual population growth rate of 2.4%, surpassing the national average of 1.1% across Canada’s 35 Census Metropolitan Areas (CMAs).
Economic Outlook
Despite facing challenges during and after the COVID-19 pandemic, the Canadian economy is now on a path to recovery, albeit with steadily increasing interest rates to control inflation. While the economy slowed down, it managed to avoid recession, with real GDP increasing by 1.1% in 2023, exceeding the forecasted 0.3% growth in the 2023 budget. This growth was driven by global demand for Canadian exports and sustained household consumption.
Economic indicators for 2024 are also promising, with real GDP gains of 7.4% (annualized growth) in January and 4.9% in February. The government expects a 3.5% annualized growth for Q1 2024, aiding the economy in managing higher interest rates and domestic inflation.
Canada’s largest stock exchange, the Toronto Stock Exchange, hosts numerous large businesses, many of which are also listed on US stock exchanges. Some of the prominent companies in Canada include Royal Bank of Canada (NYSE:RY), Shopify Inc (NYSE:SHOP), and Canadian Natural Resources Limited (NYSE:CNQ).
Royal Bank of Canada (NYSE:RY) is a leading Canadian financial services firm. It is the largest bank in Canada in terms of market capitalization. The bank has a rich history of over 150 years. It serves more than 17 million clients worldwide and employs over 97,000 individuals.
Canadian Natural Resources Limited (NYSE:CNQ) is a Canadian oil and natural gas company that mainly operates in the Western Canadian provinces of British Columbia, Alberta, Saskatchewan, and Manitoba. The company is headquartered in Calgary, Alberta. It is the largest producer of heavy crude oil in Canada. Canadian Natural Resources Limited (NYSE:CNQ) employs over 10,000 individuals and achieves a production output exceeding 1 million barrels of oil equivalent per day (BOE/d).
Shopify Inc (NYSE:SHOP) offers a platform to consolidate all e-commerce activities into a single interface. The company also offers features such as inventory management and synchronization of customer information across multiple channels. Shopify Inc (NYSE:SHOP) supports millions of businesses across more than 175 countries. Renowned brands such as Mattel, Netflix, Kylie Cosmetics, SKIMS, and Supreme, among others, rely on Shopify’s platform to drive their online operations.
Here’s what Brown Capital Management said about Shopify Inc (NYSE:SHOP) in its Q4 2023 investor letter:
“Among the top contributors for the fourth quarter were Shopify Inc. (NYSE:SHOP) and Manhattan Associates (MANH). Shopify is the second-largest cloud-based e-commerce software platform in the U.S., with 10% market share. Shopify provides upstarts and Fortune 500 companies alike with turnkey solutions to help individuals and businesses run their online stores. The range of services includes web design, inventory management, payment processing, analytics and reporting, among others. We believe the company is the most attractive alternative to Amazon and has an addressable market greater than $150 billion.
Shopify released stellar results this quarter, growing revenue 25% with meaningful margin expansion and management indicating more to come. Notably, the third quarter was Shopify’s first full quarter after deciding in May 2023 to abandon its in-house fulfillment and logistics ambitions which put significant pressure on margins. Additionally, competitive concerns from Amazon’s “Buy With Prime” initiative that launched in April 2022 also abated. The feature allows merchants selling outside of Amazon to access its fulfillment network and enjoy Prime benefits such as free deliveries and returns, posing a threat to Shopify’s payment-processing revenue. Instead of duking it out, Shopify and Amazon reached a partnership agreement in September that preserves customer choice and, to our knowledge, keeps Shopify’s payment revenues intact. With these key concerns in the rear-view mirror, Shopify should have a clear path to double-digit revenue growth and margin expansion for years.”
Pixabay/Public Domain
Our Methodology
To shortlist the top 15 fastest-growing cities in Canada 2024, we used the latest data from Statistics Canada. The cities have been ranked in ascending order of their population growth rates between 2018 and 2022. The list includes some of fastest-growing major cities in Canada.
By the way, Insider Monkey is an investing website that tracks the movements of corporate insiders and hedge funds. By using a consensus approach, we identify the best stock picks of more than 900 hedge funds investing in US stocks. The top 10 consensus stock picks of hedge funds outperformed the S&P 500 Index by more than 140 percentage points over the last 10 years (see the details here). Whether you are a beginner investor or professional one looking for the best stocks to buy, you can benefit from the wisdom of hedge funds and corporate insiders.
15 Fastest-Growing Cities in Canada
15. Fredericton, New Brunswick
Population Growth Rate: 7.79%
Fredericton serves as the capital of New Brunswick and is situated along the Saint John River. As one of the key urban centers in New Brunswick, Fredericton ranks as the province’s third-largest city, following Moncton and Saint John.
14. London, Ontario
Population Growth Rate: 7.85 %
London, located in southwestern Ontario, has a population of around 422,324 individuals. It’s roughly 120 miles from Toronto and about 140 miles from Buffalo, New York. The city serves as a regional center for healthcare and education, with institutions like the University of Western Ontario, Fanshawe College, Victoria Hospital, University Hospital, and St. Joseph’s Hospital.
13. Summerside, Prince Edward Island
Population Growth Rate: 8.26 %
Summerside is the second largest city in Prince County, Prince Edward Island. It acts as the primary service center for the western part of the island. The city has one of the lowest utility, sewer access, and property taxation rates in Canada. According to the 2022 census, Summerside had an estimated population of over 18,000 residents.
12. Chilliwack, British Columbia
Population Growth Rate: 8.33 %
Chilliwack, located in the Canadian province of British Columbia, is home to a population of 121,800 people. It lies about 100 km east of Vancouver in the Fraser Valley. The city’s economy is driven by key sectors such as dairy, poultry, and greenhouse operations.
11. Calgary, Alberta
Population Growth Rate: 8.41%
Calgary is a cosmopolitan city that has grown rapidly owing to its position as the epicenter of Canada’s oil industry. Calgary has a lower cost of living compared to many other large Canadian cities. Calgary (CMA) had a population of 1.61 million people in 2022.
10. Barrie, Ontario
Population Growth Rate: 8.99%
Barrie is in Central Ontario, about 90 kilometers away from Toronto. The city is located in Simcoe County and lies along the shores of Kempenfelt Bay. The city serves as both a summer and winter resort destination, with an economy reliant on tourism and manufacturing. Barrie is among the top 10 fastest-growing cities in Canada.
9. Winkler, Manitoba
Population Growth Rate: 9.01%
Winkler ranks as the fourth largest city in the province of Manitoba. It is located about 100 km away from Winnipeg and is the largest city in the Pembina Valley. Winkler maintains a crime severity index significantly lower than the Canadian average, earning it the distinction of being one of Canada’s safest cities.
8. Kitchener, Ontario
Population Growth Rate: 9.62%
The Waterloo Region is a metropolitan area in Southern Ontario. It is officially known as the Regional Municipality of Waterloo. It contains the Tri-Cities of Cambridge, Kitchener, and Waterloo. Kitchener is the largest city of the three and is the seat of government. The region is experiencing significant economic growth.
7. Kelowna, British Columbia
Population Growth Rate: 10.12%
Kelowna is one of the fastest-growing cities in Canada due to its appealing blend of food, weather, accessibility to nature and outdoor activities, and natural scenery. It is the third-largest metropolitan area in British Columbia, following Vancouver and Victoria. Kelowna is on the seventh position on our list of the fastest-growing cities in Canada.
6. Oshawa, Ontario
Population Growth Rate: 10.18%
Oshawa is situated on the shores of Lake Ontario, approximately 60 km east of Downtown Toronto. It is the largest municipality in the Regional Municipality of Durham. Oshawa’s population is on the rise as individuals relocate from Toronto in search of larger homes in suburban settings.
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Disclosure: None. 15 Fastest-Growing Cities in Canada is originally published on Insider Monkey.