Canada finally bans foreigners from buying homes

With Canada’s dwelling values rising by around 50% over the pandemic:

Canada home prices

The Trudeau Canadian Government will ban foreigners from buying homes for two years while also boosting housing supply in a bid to boost housing affordability:

Canada will ban most foreigners from buying homes for two years and provide billions of dollars to spur construction activity in an attempt to cool off a surging real-estate market…

The foreign-buyer ban won’t apply to students, foreign workers or foreign citizens who are permanent residents of Canada, the person said…

The move signals that Prime Minister Justin Trudeau is becoming more assertive about taming one of the developed world’s most expensive housing markets – and that the government is growing more concerned about the political backlash to inflation and the rising cost of housing…

Several billion dollars in Freeland’s budget will be allocated to building affordable housing and to helping local governments update their systems to allow faster construction of new properties.

The Trudeau Government is full of it given it has recently ramped-up the nation’s immigration intake to an insane 401,000 over the next five years in a bid to catch-up with lower numbers over the pandemic. This immigration influx will be achieved by dramatically lowering entry standards and handing-out permanent residency to international students like tic tacs.

Obviously flooding Canada with 400,000 extra people every year will massively worsen any housing shortage, lower housing affordability, and consign more Canadians to live in high-rise shoe boxes.

Unconventional Economist
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Comments

  1. Classic Bait and Switch. Too many loopholes. A 2 year ban is laughable. Call my cynical but this move is purely so the public doesn’t lynch him – especially in Vancouver.

  2. kiwikarynMEMBER

    LOL. As NZ found out, its not offshore foreign buyers buying up houses to leave empty that is the problem. Its the hundreds of thousands (for Canada, millions) of foreigners surging into the country who buy houses. So long as “The foreign-buyer ban won’t apply to students, foreign workers or foreign citizens who are permanent residents of Canada” any “ban” will be completely ineffective. Just like the NZ foreign buyer ban made zero difference to the number of Asian buyers sitting in auction rooms bidding ridiculous sums to “win” the house.

  3. So they admit foreign buyers push prices up!
    This is why we should ban foreigners from buying residential property full stop! It’s even more critical for small countries like Australia when there are so many people from countries with underdeveloped wealth management services, low legal rights or not able to actual own land etc

  4. When I bought my place at auction last year we ended up bidding against a foreign couple who were taking orders for their bids over the phone in a foreign language. They may well have been citizens, but the actual purchaser of the house almost certainly was not.

    This is just more bullshido frombTrudeau, who clearly wishes to destroy his country.

  5. – Will all that immigration push property prices higher ? Only if those immigrants have a good or decent income.