“Through this legislation, we are taking steps to ensure that the homes are owned by Canadians, for the benefit of all who live in this country,” added Hussen.
According to figures from last summer, the median home price in Canada was C$777,200 ($568,000), a figure 11 times greater than the average family income. This law, which entered into force on January 1, was one of the electoral promises of the Canadian Prime Minister, Justin Trudeau.
“The appeal of Canadian homes is attracting speculators, wealthy corporations and foreign investors”Trudeau’s Liberal Party campaign website noted last year.
“This is generating a real problem of underused and vacant housing, rampant speculation and skyrocketing prices. Houses are for people, not investors.
But some have criticized the measure, arguing that it is not clear if it will have any impact on the Canadian real estate market.
In late December, 11 days before the ban took effect, the government announced some exemptions to the regulation, including international students who have been in the country for at least five years, refugee claimants, and people with temporary work permits.
Non-Canadian residents living in the country make up less than 6% of homeowners in Ontario and British Columbia, provinces that are home to Toronto and Vancouver, two of the most expensive real estate markets in the world.
In both cities, the price of an average home is over u$s730,000. While Canadian house prices fell slightly in 2022, they are still much higher than they were a decade ago.
house prices increased by 48% last year compared to 2013, when the median home price was $386,000.
New Zealand passed similar legislation in 2018 banning some foreigners from buying homes, but the move hasn’t stopped inflation-adjusted home prices from rising further.
Source: Ambito
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