Canada, grappling with an affordable housing crisis, has announced a new law barring foreigners from buying single residential units, condo’s, and apartments for a period of two years. It also plans to inject about $10 billion in tackling the supply problem that is contributing to sky-high market rents and prices.
The news has been echoed by international media, particularly in places where investors are most affected, like China and India. Policy-makers are targeting foreign buyer’s who purchase properties and never intend to actually live in them during a low-inventory situation. Those exempt from the new law include foreign workers, permanent residents, students, and foreigners buying their primary residence in Canada.
The average median price for a residential home in Vancouver is currently just over $1.3 million.