Our friendly neighbors to the north may not be quite as welcoming to foreign investors should Prime Minister Justin Trudeau win reelection next month.
According to the Seattle Times, Trudeau promised to enact a two-year ban on foreign homebuyers in Canada if he’s reelected. The move is part of an effort to tackle housing affordability and slow down a very hot housing market.
“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. “No more foreign wealth being parked in homes that people should be living in.”
Like much of the U.S., cities across Canada continue to see record prices in the fast-paced market. Per the Canadian Real Estate Association, the average cost of a home was C$669,200 ( or $529,840 USD) in July, a 16 percent increase from July 2020. One area of particular concern is Vancouver, where real estate has become especially popular among nonresident buyers from China and Hong Kong.
Trudeau’s political opponents have generally backed similar proposals as the housing market has dominated the election. Erin O’Toole, Trudeau’s biggest rival in the election, said he would also ban homebuying for foreign investors living outside Canada for at least two years, while the left-leaning New Democratic Party is proposing a 20 percent tax on homes bought by people who aren’t Canadian citizens or permanent residents.