Canadian homes may be off-limits to foreign buyers for two years, Trudeau says in re-election pledge to rein in runaway prices

The average cost of a home rose 16 per cent to C$669,200 in July from a year ago, according to the Canadian Real Estate Association

Outrage over housing affordability is increasingly directed at foreign buyers, especially in Vancouver

Reading Time:2 minutes

A panoramic view of Vancouver in Canada’s British Columbia province, featuring Canada Place, Burrard Inlet, Coal Harbour, Lions Gate Bridge, downtown Vancouver and Stanley Park. Photo: Shutterstock

Published: 10:52am, 25 Aug 2021Updated: 11:03am, 25 Aug 2021

Prime Minister Justin Trudeau promised to introduce a two-year ban on foreign homebuyers to tackle housing affordability in Canada if he’s re-elected.

The proposed restriction is an attempt to cool a housing market that has soared during the Covid-19 pandemic. Surging prices have become a central issue in the campaign for the September 20 vote, in which Trudeau hopes to regain a majority in parliament, with all three major parties promising crackdowns.

“You shouldn’t lose a bidding war on your home to speculators. It’s time for things to change,” Trudeau said at a campaign event in Hamilton, Ontario, about 40 miles southwest of Toronto. “No more foreign wealth being parked in homes that people should be living in.”

Outrage over housing affordability is increasingly directed at foreign buyers, especially in Vancouver, whose real estate has become increasingly popular among non-resident buyers from China and Hong Kong.

Homes in the Killarney suburb in Vancouver. Photo: Handout

While the number of houses changing hands has declined in recent months after a pandemic-driven boom in activity, prices remain near record levels. The average cost of a home was C$669,200 (US$529,840) in July, according to the Canadian Real Estate Association – up 16 per cent from a year ago.

The Liberals are also proposing a ban on blind bidding, tax-free savings accounts for first-time buyers and more oversight of the real estate industry to fight money laundering. They’re also vowing to add or repair 1.4 million homes over the next four years.