A ban on foreign investors buying urban housing in Canada starting in 2023 will be extended to Jan. 1, 2027, to address the shortage of houses and apartments affecting the country, the government announced on Feb. 4, 2024, Sunday.
Exceptions to the law, which apply only to city residences and not tourist properties, are still provided for refugees or permanent residents, as well as certain international students and temporary workers, the report said.AFP.
Between 2 and 7% of owners
“By extending the ban on foreign investment, 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 announced in a press release published on Sunday February 4.
Justin Trudeau’s Liberal government has blamed foreign investors for driving up prices for years, particularly in major urban centers. However, many experts estimate that this ban on foreign buyers — who represent 2 to 7% of homeowners in Canada in 2021, according to the federal statistics agency — will not have the desired effect of creating more affordable housing.
Build new housing
Instead, they emphasize the need to build more homes to meet demand. At the same time, according to a recent report from the Canada Mortgage and Housing Corporation, demand for rental housing will once again exceed supply in 2023 and the number of apartments available for rent has never decreased since 1988, leading to significant rent increases. .
Strongly criticized on the subject by the opposition, the government has stepped up its announcements in recent months and plans to allocate billions of dollars to build new housing, as well as reallocate federal land to build apartments.
In mid-January, Canada announced the establishment of a cap on visas specifically for foreign students whose numbers have exploded in recent years, adding to the housing crisis the government says.
