From the beginning of 2023, foreigners are prohibited from buying property in the city. Prohibition extended until January 1, 2027, to deal with shortages.
The ban on foreign investors buying urban housing in Canada from the beginning of 2023 will be extended until January 1, 2027 to deal with it. shortage of houses and apartments affecting the country, the government announced on Sunday. Exceptions to this law, which apply only to city residences and not tourist properties, are still granted for refugees or permanent residents, as well as certain international students and temporary workers.
“By extending the foreign investment ban, we will ensure that housing serves as a home for Canadian families and does not become a speculative financial asset,” Canadian Deputy Prime Minister Chrystia Freeland said in a press release issued Sunday.
Not the expected effect?
Justin Trudeau’s Liberal government blames foreign investors for years of driving up prices, especially in big cities. According to many experts, however, this ban aimed at foreign buyers – who represented between 2 and 7% of homeowners in Canada in 2021, according to the federal statistics agency – would not have the desired effect of making housing more affordable. Instead, they insist that more housing needs to be built to meet demand.
At the same time, demand for rental housing will greatly exceed supply again in 2023 and the number of apartments available for rent has never been lower since 1988, causing rents to rise sharply, according to the latest report from the Canada Mortgage and Housing Corporation. .
Strongly criticized by the opposition on this issue, the government has stepped up its announcements in recent months and plans to allocate billions of dollars to the construction of new housing, as well as the reallocation of federal land for the construction of apartments. . In mid-January, Canada, in particular, announced a cap on visas for foreign students whose numbers have soared in recent years, exacerbating the government’s housing crisis.