Why foreigners can’t buy Canadian homes

Canada, in an effort to curb the housing shortage, is banning foreign investors from buying for two years.

Canada has officially banned most foreigners from buying a home, and it all has to do with Canada’s wildly unaffordable housing market.

Housing prices were up 48% in 2022 compared to 2013, and now average ~$568k — over 11x the median household income after taxes, per the BBC.

The ban, aimed to prevent investors from snapping up properties and driving up prices, prohibits non-citizens and non-permanent residents from buying residential properties for two years. Violators face a $7.4k fine.

Exceptions include international students, refugees, and people buying vacation properties outside of urban areas.

Will that work?

Well, New Zealand enacted a similar ban in 2018, but inflation has led to a continued rise in prices.

In Canada, detractors argue that foreigners account for less than 5% of buyers, and the real issue is supply.

Parliament member Jenny Kwan told The New York Times that the government should target real estate investment trusts and for-profit real estate companies. And it has a bit, via anti-home-flipping and vacancy taxes.

Meanwhile, in the US…

… the fight rages against short-term rentals.

  • NYC’s new law, which requires hosts to prove they live at the property, could wipe ~25% of local Airbnb listings.
  • Philly hosts must now obtain a “limited lodging operator license,” which ensures units are up to code, and a hotel license if they don’t live on-site.

FWIW, research suggests short-term rentals do drive up housing costs, and experts have suggested these very methods as a possible solution, per MarketWatch.

For more: An interesting article about “supply skepticism,” the belief that we actually don’t need to build more homes.

Get the 5-minute roundup you’ll actually read in your inbox​

Business and tech news in 5 minutes or less​

RECENT POSTS

Psst

How'd Bezos build a billion dollar empire?

In 1994, Jeff Bezos discovered a shocking stat: Internet usage grew 2,300% per year.

Data shows where markets are headed.

And that’s why we built Trends — to show you up-and-coming market opportunities about to explode. Interested?

[email-submission-form button-text="Join Free" include-trends-opt-in="true" success-url="https://thehustle.co/new-thank-you-v2/" default-source="thehustleco" default-medium="home-exit-popup" default-campaign="home-page" form-id="exit-popup-general" optinmonster-conversion="true"]
<script type="text/javascript"> var onloadCallback = function() { grecaptcha.render('verify-your-humanity', { 'sitekey' : '6LdddrcZAAAAALyttpvOqiwQGwq5BNhgDz4tMQGE' }); }; function getCookieValue(a) { var b = document.cookie.match('(^|[^;]+)\\s*' + a + '\\s*=\\s*([^;]+)'); return b ? atob(decodeURIComponent(b.pop())) : ''; } function getCookie(name) { var cookieArr = document.cookie.split(";"); for(var i = 0; i < cookieArr.length; i++) { var cookiePair = cookieArr[i].split("="); if(name == cookiePair[0].trim()) { return decodeURIComponent(cookiePair[1]); } } return null; } function setHiddenFieldValue(wrappingDiv, searchParams, className, utmName, cookieName, defaultValue) { var el = wrappingDiv.getElementsByClassName(className)[0]; var existingVal = el.getAttribute('value'); if (utmName == 'ref') { var newVal = searchParams.get(utmName) || getCookie(cookieName); } else { var newVal = searchParams.get(utmName) || getCookieValue(cookieName); } if ((existingVal == null || existingVal == '' || existingVal == defaultValue) && (newVal != null && newVal != '')) { el.setAttribute('value', newVal); } } function setHiddenFieldValueFromUtm( wrappingDiv, searchParams, className, utmName, defaultValue ) { var el = wrappingDiv.getElementsByClassName(className)[0]; if (el != null) { var existingVal = el.getAttribute("value"); var newVal = searchParams.get(utmName); if (newVal != null && newVal != "") { el.setAttribute("value", newVal); } } } function initForm() { var wrappingDivs = document.getElementsByClassName('email-submission'); Array.prototype.forEach.call(wrappingDivs,wrappingDiv => { var sp = new URLSearchParams(window.location.search); setHiddenFieldValue(wrappingDiv, sp, 'funnel-source', 'utm_source', 'funnel_source', 'thehustleco'); setHiddenFieldValue(wrappingDiv, sp, 'funnel-campaign', 'utm_campaign', 'funnel_campaign', 'home-page'); setHiddenFieldValue(wrappingDiv, sp, 'funnel-medium', 'utm_medium', 'funnel_medium', 'home-exit-popup'); setHiddenFieldValue(wrappingDiv, sp, 'funnel-referral', 'ref', 'funnel_referral', ''); setHiddenFieldValueFromUtm(wrappingDiv, sp, 'funnel-a', 'a', ''); setHiddenFieldValueFromUtm(wrappingDiv, sp, 'funnel-c', 'c', ''); setHiddenFieldValueFromUtm(wrappingDiv, sp, 'funnel-o', 'o', ''); setHiddenFieldValueFromUtm(wrappingDiv, sp, 'funnel-oc', 'oc', ''); setHiddenFieldValueFromUtm(wrappingDiv, sp, 'funnel-e', 'e', ''); setHiddenFieldValueFromUtm(wrappingDiv, sp, 'funnel-f', 'f', ''); setHiddenFieldValueFromUtm(wrappingDiv, sp, 'funnel-r', 'r', ''); setHiddenFieldValueFromUtm(wrappingDiv, sp, 'funnel-t', 't', ''); setHiddenFieldValueFromUtm(wrappingDiv, sp, 'funnel-s1', 's1', ''); setHiddenFieldValueFromUtm(wrappingDiv, sp, 'funnel-s2', 's2', ''); setHiddenFieldValueFromUtm(wrappingDiv, sp, 'funnel-s3', 's3', ''); setHiddenFieldValueFromUtm(wrappingDiv, sp, 'funnel-s4', 's4', ''); setHiddenFieldValueFromUtm(wrappingDiv, sp, 'funnel-s5', 's5', ''); var error_message = getCookieValue('validate-email-message'); if (error_message && error_message.trim() != '') { var error = wrappingDiv.getElementsByClassName('funnel-error')[0]; var prev_email = getCookieValue('funnel_email'); error_message = prev_email + " is not valid. Please try again"; error.innerHTML = error_message; error.style = ''; } }); if (false) { initCaptchaFormV2(); } } function initCaptchaFormV2() { var v3RecaptchaResponseEl = document.getElementById('recaptcha-response-v3'); v3RecaptchaResponseEl.parentNode.removeChild(v3RecaptchaResponseEl); var wrappingDiv = document.getElementById('email-submission'); var subForm = wrappingDiv.getElementsByClassName('email-submission')[0]; var captchaVersion = document.createElement('input'); captchaVersion.class = 'g-recaptcha hidden-input'; captchaVersion.type = 'hidden'; captchaVersion.name = 'g-recaptcha-response-v2'; captchaVersion.value = 'true'; subForm.appendChild(captchaVersion); var captchaEl = document.createElement('div'); captchaEl.id = 'verify-your-humanity'; subForm.prepend(captchaEl); var captchaApiScriptEl = document.createElement('script'); captchaApiScriptEl.src = 'https://www.recaptcha.net/recaptcha/api.js?onload=onloadCallback&render=explicit'; captchaApiScriptEl.async = true; captchaApiScriptEl.defer = true; document.head.appendChild(captchaApiScriptEl); } window.addEventListener('DOMContentLoaded', (event) => { initForm(); }); if(typeof hp_interval == 'undefined') { var hp_interval = 0; var hp_ts = 0; var hp_try = 0; jQuery(document).ready(function ($) { hp_interval = setInterval(function(){ $('input.hp_ts').val(hp_ts); hp_ts += 1; if(hp_ts >= 180) { clearInterval(hp_interval); } },1000); $('.email-submission:not(.prevent-default)').submit(function (e) { var form = $(this); if(hp_ts < 3 && hp_try < 1) { e.preventDefault(); if (form.find('.email-form-submit-message').length < 1) { form.find('.email-form-wrap').after('<p class="email-form-submit-message" style="padding: 0em 1.5em;">Too fast! Are you a human? Try again please.</p>'); } hp_try += 1; hp_ts = 0; $('input.hp_try').val(hp_try); } }); }); } </script> <div class="email-signup" id=email-submission> <div class="funnel-error" style="display:none;"></div> <form class="email-submission " id="exit-popup-general" action="https://cms.thehustle.co/api/v1/contacts/wordpress_create" method="post" autocomplete="email"> <div class="email-form-wrap"> <input class="funnel-source hidden-input" type="hidden" name="source" value="thehustleco"> <input class="funnel-campaign hidden-input" type="hidden" name="campaign" value="home-page"> <input class="funnel-medium hidden-input" type="hidden" name="medium" value="home-exit-popup"> <input class="funnel-form-id hidden-input" type="hidden" name="form-id" value="exit-popup-general"> <input class="funnel-referral hidden-input" type="hidden" name="referral_code"> <input class="funnel-fail-url hidden-input" type="hidden" name="fail_url" value=""> <input class="funnel-ip-country-wordpress hidden-input" type="hidden" name="ip_country_wordpress" value="US"> <input class="funnel-submission-url hidden-input" type="hidden" name="submission_url" value="https://thehustle.co/01052023-canada-real-estate/"> <input class="funnel-a hidden-input" type="hidden" name="a" value=""> <input class="funnel-c hidden-input" type="hidden" name="c" value=""> <input class="funnel-o hidden-input" type="hidden" name="o" value=""> <input class="funnel-oc hidden-input" type="hidden" name="oc" value=""> <input class="funnel-e hidden-input" type="hidden" name="e" value=""> <input class="funnel-f hidden-input" type="hidden" name="f" value=""> <input class="funnel-r hidden-input" type="hidden" name="r" value=""> <input class="funnel-t hidden-input" type="hidden" name="t" value=""> <input class="funnel-s1 hidden-input" type="hidden" name="s1" value=""> <input class="funnel-s2 hidden-input" type="hidden" name="s2" value=""> <input class="funnel-s3 hidden-input" type="hidden" name="s3" value=""> <input class="funnel-s4 hidden-input" type="hidden" name="s4" value=""> <input class="funnel-s5 hidden-input" type="hidden" name="s5" value=""> <input class="funnel-success-url hidden-input" type="hidden" name="success_url" value="https://thehustle.co/new-thank-you-v2/"> <input id="recaptcha-response-v3" class="g-recaptcha hidden-input" type="hidden" name="g-recaptcha-response" value=""> <div class="signup-icon" style="display:none;"> <svg width="24" viewBox="0 0 24 24" fill="none" xmlns="http://www.w3.org/2000/svg"><path d="M22 6c0-1.1-.9-2-2-2H4c-1.1 0-2 .9-2 2v12c0 1.1.9 2 2 2h16c1.1 0 2-.9 2-2V6Zm-2 0-8 5-8-5h16Zm0 12H4V8l8 5 8-5v10Z" fill="#848B92"></path></svg> </div> <input type="hidden" name="hp_ts" class="hp_ts" value="0"> <input type="hidden" name="hp_try" class="hp_try" value="0"> <input type="text" name="first_name" placeholder="Enter your name" value=""> <input class="signup-email" type="email" name="email" placeholder="Your email address" required autocomplete="email"> <input class="email-submit om-trigger-conversion" type="submit" value="Join Free"> </div> <div class="validate-mistake-emails-message" style="display:none;"></div> <div class="form-options" style="display:none"> <div class="form-options-wrap"> <div class="trends-opt-in"> <input id="trends_opt_in_email_submission" class="trends-opt-in-checkbox" type="checkbox" name="trends_opt_in"> <label for="trends_opt_in_email_submission" id="trends_opt_in_label" class="trends-opt-in-text">Yes, I’d like to receive additional marketing emails on hot business opportunities from Trends, by the Hustle.</label> </div> <div class="privacy-text"> <p>We're committed to your privacy. The Hustle uses the information you provide to contact you about our relevant content and services. You may unsubscribe from these communications at any time. For more information, check out our <a href="https://thehustle.co/privacy">Privacy Policy</a>.</p> </div> </div> </div> <div submit-success> <template type="amp-mustache"> <p class="c-message c-message--success">Thank you for subscribing.</p> </template> </div> <div submit-error> <template type="amp-mustache"> <p class="c-message c-message--failed">Your submission failed. Please try again!</p> </template> </div> </form> </div>