After a massive surge in foreign investors purchasing homes in the country, Canadian Prime Minister Justin Trudeau’s law that prevents foreigners from buying property finally took effect this Sunday.
This plan was set in motion in order to prevent the further inflation of property prices, which was a replay of what happened here in the US.
Average Cost of Home in Canada Shoots up to $800K as Chinese, Indian Investors Corner the Market
While it was originally passed in June this year, it took well over half a year for it to finally put a stop to foreign investment. This led to the average home price throughout Canada’s ten provinces spiking to $800k.
Election interference, foreign police stations and an admiration for their 'basic dictatorship' kinda makes you wonder who Trudeau (and his government) really work for? #cdnpoli #trudeaumustgo pic.twitter.com/rojjfJmAdu
— Scott Carpenter (@ScottRCarpenter) December 26, 2022
Despite the fact that this surge of Chinese and Indian investors took place during the pandemic, the Canadian housing market is still worse for wear; only a limited supply of homes has remained.
Additionally, this led to a frenzied bidding war for what little was left on the market, followed by a historically high amount of displaced Canadians, up by 38% compared to three years earlier.
Hilariously enough, the law has managed to stay under the radar, with no major media outlets reporting on it, save for a few that claimed it to be xenophobic.
CANADA: Country's government bans foreigners from buying residential property amid housing affordability and supply challenges.
— The Spectator Index (@spectatorindex) January 1, 2023
Canadians might soon be in the minority in their own country
However, it may have been necessary, as the country’s immigrant data showed they currently make up 23% of the entire population, the majority of them coming from Asia, just like the investments barred by the law.
In an effort to prevent Florida from suffering a similar fate, Governor Ron DeSantis proposed a bill that would prevent buyers from China, as well as seven other countries, from buying farmland and properties near military bases in the state.
Even though this ban has yet to be approved, DeSantis assured that it would make it much more difficult for China, Russia, North Korea, Iran, Syria, Cuba, and Venezuela to deploy espionage operations on American soil.
Wef 1st Jan 2023, Canada bans foreigners buying residential property in the country
Exceptions include refugees and permanent residents
Ban would apply only to city dwellings and not to recreational properties
This is to make homes available for locals
— Sonal Bhutra (@sonalbhutra) January 2, 2023
Even after all the criticism, they’d received for the law, Canadian officials stood their ground, assuring the ban on foreign investment is here to stay, at least until the housing market cools down and supply increases.
The country’s Housing Minister, Ahmad Hussein, declared the ban makes it so Canadians own the majority of housing in Canada, which in turn, benefits everyone who’s a resident of the country.
This would also make homes much more affordable for the average Canadian who just can’t compete with the profiteers and corporations from China and India.
In a recent press conference, Trudeau announced a plan that would create affordable housing opportunities for all Canadians, adding the recently approved budget of $8.9 million is going to help make it possible.