Canada to instate two-year ban on foreign homebuyers in attempt to curb rising prices

The federal government is planning on banning most foreigners from buying homes in Canada for two years.

ADVERTISEMENT
Image
Jarryd Jaeger Vancouver, BC
ADVERTISEMENT

In an attempt to quell skyrocketing real estate prices across Canada, the federal government is planning on instating a two-year ban on most foreigners buying homes.

It's no secret that Canada has one of the exorbitant real estate markets in the world, with the average price of a home currently sitting at $869,300. Over the past two years alone, prices have gone up by over 50%.

In response, the federal government is planning on banning most foreigners from buying homes in Canada for two years.

According to CP24, the proposed ban will be introduced in the Liberals' budget on Thursday as part of a larger set of measures aimed at increasing housing affordability. The budget also includes $4 billion to update municipal zoning and permit systems, $1.5 billion for co-op housing, and $1 billion for affordable housing.

The ban, which was promised by Trudeau in 2021, reportedly applies to the purchase of condos, apartments and single residential units. Permanent residents, foreign workers, and students will still be permitted to buy these properties, as well as foreigners whose primary residence is in Canada.

This, says CTV News' Joyce Napier, is meant to crack down on foreigners who "buy the home and never come to Canada to live in it and leave the home empty while the inventory is low and people can’t buy homes."

Some analysts in Vancouver, Canada's second most expensive housing market, are skeptical that the ban would achieve the desired result.

Speaking with the Vancouver Sun, director of the UBC Centre for Urban Economics and Real Estate, Tsur Sommerville, even went so far as to call the ban "virtue signalling."

He pointed out that most foreign homebuyers go for expensive properties in Vancouver's swankiest neighbourhoods, a market that's "not what is defining affordability" for ordinary Canadians.

According to the Sun, BC has already attempted to dissuade foreign home buyers with a 20% foreign-buyers tax as well as a speculation and vacancy tax, however prices have continued to rise unabated.

Some have expressed concern regarding the exceptions made for students. One Vancouver resident argued that parents of foreign students could potentially exploit the loophole and buy homes under their children's names.

ADVERTISEMENT
ADVERTISEMENT

Join and support independent free thinkers!

We’re independent and can’t be cancelled. The establishment media is increasingly dedicated to divisive cancel culture, corporate wokeism, and political correctness, all while covering up corruption from the corridors of power. The need for fact-based journalism and thoughtful analysis has never been greater. When you support The Post Millennial, you support freedom of the press at a time when it's under direct attack. Join the ranks of independent, free thinkers by supporting us today for as little as $1.

Support The Post Millennial

Remind me next month

To find out what personal data we collect and how we use it, please visit our Privacy Policy

ADVERTISEMENT
ADVERTISEMENT
By signing up you agree to our Terms of Use and Privacy Policy
ADVERTISEMENT
© 2024 The Post Millennial, Privacy Policy | Do Not Sell My Personal Information