In a move to make home ownership more accessible to Canadians, the Canadian government has extended its ban on foreign home ownership for an additional two years. Experts said that the presence of foreign investors, coupled with an increase in migrants and international students, has significantly contributed to Canadians being priced out of the housing market, with home prices increasing by 36% since 2019.
The Toronto Regional Real Estate Board highlighted a 37% jump in home purchases over the last year, attributed in part to lower interest rates that have sparked a buying frenzy.
Deputy Prime Minister and Minister of Finance Chrystia Freeland emphasized the government’s commitment to ensuring that homes serve as living spaces for Canadian families rather than as speculative financial assets.
“By extending the foreign buyer ban, we will ensure houses are used as homes for Canadian families to live in and do not become a speculative financial asset class,” Freeland said.
However, the extension has faced criticism from within the real estate industry. Janice Myers, CEO of the Canadian Real Estate Association (CREA), called the move “baseless” and “completely unnecessary,” pointing out a lack of evidence to support the government’s stance on improving housing affordability through this measure.
Statistics Canada’s latest data from 2020 shows that non-resident investors owned 7% of condominiums in British Columbia, a province where condos have led the growth in the housing market, accounting for 54% of all new properties.
In conjunction with the foreign ownership ban, the finance minister’s office announced a new $200 million program aimed at supporting low-income renters and shelters, as rent prices continue to climb.
