A year ago, the federal government instituted a foreign buyer ban after passing the Prohibition on the Purchase of Residential Property by Non-Canadians Act in 2022. The two-year ban, which came into effect on Jan. 1, barred non-citizens, non-permanent residents and foreign controlled companies from buying up Canadian property as an investment.
But Wallace says that ban didn’t do much for her family.
“There’s all of these very luxurious buildings going in all around us that are outrageously priced,” said Wallace, after attending an open house at a promising $1.1-million condo. “The foreign buyers tax … I don’t think that’s making an iota of difference.”
Critics say the foreign buyers ban, which was aimed at making housing affordable for Canadians, had many exemptions and was more of a political manoeuvre. They say it’s clear housing remains out of reach for too many in Canada, and that the country should look to other places in the world to find strategies to foster home ownership.
It’s because there are numerous factors at play. Low interest rates combined with investors (some of whom are foreign), Airbnb hotels, along with record high immigration and minimal supply expansion all contribute to the problem. All play an aggravating role, but that means that there isn’t a single silver bullet to solve the problem.
It’s frustrating to me when people argue about whether it’s a supply side issue or a demand side issue - it’s both! There aren’t enough homes for people AND it didn’t help that people had to compete with investors with below-inflation interest rates.