Home prices and rents in Canada are increasing day by day. Along with that, the cost of living has also increased. The ban on foreigners buying houses and residential properties in the country is being extended for another two years. The move is being made to make housing more affordable for local residents facing a housing crisis and to bring sky-high house prices within reach.
Earlier in January last year, the ban on foreigners buying houses in Canada came into effect. The latest move would extend that ban for another two years. Reuters reported this information in a report on Sunday (February 4) night.
According to the report, Canada announced on Sunday the extension of the ban on foreign ownership of Canadian housing for another two years. The country said the move was aimed at addressing Canadians’ concerns about skyrocketing prices in the housing market in cities and towns across the country.
Canada is facing a housing affordability crisis due to strong demand, Reuters says. And this has been attributed to the increase in the number of immigrants and foreign students. Basically, just as rising costs have slowed home construction, it has also greatly increased the demand for homes.
Canada’s Deputy Prime Minister Chrystia Freeland said in a statement, “To make housing more affordable for Canadians, the ongoing ban on foreign ownership of Canadian housing, which was scheduled to expire on January 1, 2025, will be extended to January 1, 2027.”
The Canadian government says skyrocketing housing prices in cities and towns across the country, as well as foreign ownership, have raised concerns among Canadians. Earlier last month, the country’s government took steps to control foreign students due to the arrival of a record number of immigrants and the increasing housing crisis.
Note that rapid population growth due to immigration has put pressure on services such as healthcare and education, while also contributing to housing costs.