Canada Implements Ban on Foreign Homebuyers to Combat Unaffordable Housing Market

1 january, the canadian government announced a ban prohibiting people who are not canadian citizens or permanent residents from buying residential properties. those who breach the ban face a c$10,000 fine. the ban applies to the whole of canada and aims to help ease one of the most unaffordable housing markets in the world.
as of this summer, the average home price in canada is c$777,200, which is more than 11 times the median household income after taxes. the ban was introduced in response to this alarming statistic, with federal housing minister ahmed hussen stating it is meant to discourage buyers from looking at homes as commodities instead of a place to live and grow a family. housing prices in canada have been steadily increasing since 2013, when the average price of a home was c$522,951.
new zealand passed a similar legislation banning foreign homebuyers in 2018, and inflation-adjusted home prices have continued to rise since the ban came into effect. other countries have enacted different measures to curb foreign homeownership, but it is unclear what impact the canadian ban will have on the housing market.

By Evey Lovelace

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