Canada has announced a two-year extension to the ban on foreign ownership of Canadian housing, citing concerns about Canadians being priced out of housing markets across the country.
The housing affordability crisis in Canada has been exacerbated by factors such as an increase in migrants and international students, leading to heightened demand for homes while construction costs have risen.
Deputy Prime Minister Chrystia Freeland stated, “As part of using all possible tools to make housing more affordable for Canadians, the ban on foreign ownership of Canadian housing, which is currently set to expire on January 1, 2025, will be extended to January 1, 2027.”
The Canadian government attributes the housing crisis to foreign ownership, which has contributed to concerns about Canadians being priced out of housing markets in various cities and towns. Last month, Canada implemented a two-year cap on international student permits and ceased providing work permits to some students after graduation in an effort to address the housing crisis exacerbated by record numbers of newcomers.
Rapid population growth due to immigration has strained essential services like healthcare and education, leading to increased housing costs. These challenges have impacted the popularity of Liberal Prime Minister Justin Trudeau, with polls indicating a decline in support if an election were held at present.