Foreign buyers own small portion of Canada’s housing market

New data shows foreign owners make up small amount of home, condo owners

Foreign buyers make up a minuscule portion of the overall housing market in this country, new research shows, but what they own is more expensive and newer than the average Canadian homeowner.

And there are indications foreign buyers are moving out of the traditional bases of Toronto and Vancouver and into new cities.

Non-residents owned 3.4 per cent of all residential properties in Toronto and 4.8 per cent of residential properties in Vancouver, according to new housing statistics by Canada Mortgage and Housing Corp. and Statistics Canada.

Largely what foreign buyers scoop up are newer, more expensive homes. In Vancouver, non-resident owners, as they’re known, had homes valued on average at $2.3 million compared to $1.6 million for the owners whose primary residence was in Canada.

In Toronto, the average detached home owned by a non-resident was valued at $944,100 compared to $840,600 for residents, a difference of $103,500 or 12.3 per cent.

Foreign owners are stepping into the big-city condo market where, again, what they own is more expensive than the what residents own. In and around Toronto, the average assessed value for a condo owned by a non-resident was $420,500, compared to $385,900 for a resident. In Vancouver, the figures are $691,500 and $526,700, respectively.

CMHC says that overall, foreign buyers owned less than one per cent of the condo stock in 17 metropolitan areas across the country.

The figures mark the first time that CMHC and Statistics Canada have measured foreign ownership in the country’s hot housing market to see how much influence foreign buyers have over skyrocketing prices.

Ontario and B.C. have rules in place to dampen foreign interest in buying properties as investments.

The data from CMHC suggests that the foreign buyer tax in both provinces has shifted foreign ownership to other parts of the country.

The CMHC survey found that downtown Montreal and the city’s Nun’s Island had the largest increases in the share of non-resident owners over the last year. On Nun’s Island, the rate went from 4.3 per cent in 2016 to 7.6 per cent this year; on the island of Montreal, the rate went from 0.9 per cent to 1.5 per cent.

“The lack of growth in Toronto and Vancouver, combined with the increases in Montreal, indicate the possibility of a shift from these centres after the introduction of foreign buyers’ taxes in Ontario and British Columbia,” CMHC chief economist Bob Dugan said in a release accompanying the data.

“Other factors attracting demand to Montreal include lower housing prices and a relatively strong economy.”

The head of CMHC has publicly argued that foreign ownership is not the main driver for increasing housing prices. Evan Siddall has previously said that foreign ownership makes up less than five per cent of the housing market.

“Foreign ownership is a thing; it’s not the thing,” Siddall said in an interview earlier this year.

“The sources of demand that are pushing prices higher are many-fold and the sources of investment speculation…in the real estate part of our economy are many-fold and more domestic than foreign.”

The Canadian Press

Like us on Facebook and follow us on Twitter.

Just Posted

Lacarya Ladies Night golf report for June 7

There were 16 golfers out for Ladies Night on June 7. It… Continue reading

‘Daddy bonus’ common in B.C. workplaces, study finds

UBC researchers say dads don’t have to be number one in the office to get a raise

New grants for Clearwater and area businesses hurt by last year’s wildfires

Community Futures offers funding for marketing and training to businesses impacted by wild fires

B.C. turns up the heat

Environment Canada has issued a special weather statement for most the province due to high temperatures

Updated: RCMP find body of missing woman who fell into B.C. River

The body of Jessie Lavallee was found in the North Thompson River south of Barriere

Homeless people living on ‘Surrey Strip’ move into modular housing

BC Housing says 160 homeless people are being moved into temporary Whalley suites from June 19 to 21

Port of Prince Rupert names Shaun Stevenson as new CEO

Stevenson has worked for the port for 21 years as vice president of trade development

Senate officially passes Canada’s marijuana legalization bill

Bill C-45 now moves to royal assent, which is the final step in the legislative process

Fake attempted abduction not funny to B.C. neighbourhood residents

Two teenage boys won’t face criminal charges after scaring girl

Mosquitoes out in full force already? Blame the weather

But a B.C. mosquito expert says the heat wave will help keep the pests at bay

Man pleads not guilty in 1987 slayings of B.C. couple

William Talbott of SeaTac was arraigned Tuesday in Snohomish County Superior Court

New GOP plan: Hold kids longer at border – but with parents

Move would ease rules that limit how much time minors can be held with their parents

Without a big data strategy, Canadians at risk of being ‘data cows’

Presentation said artificial intelligence could give Facebook and Amazon even more power

Five B.C. families stuck in Japan as Canada refuses visas for adopted babies

Lawyer points to change in American policy around adoptions from Japan

Most Read