Foreign buyers own small portion of Canada’s housing market

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.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Const. Mat Jones of the CRD Integrated Road Safety Unit joined a team of Saanich police officers and ICBC representatives cracking down on distracted driving at the McKenzie/Quadra intersection in Saanich on March 3. (Devon Bidal/News Staff)
‘Leave the phone alone’: 40 distracted driving tickets issued in two hours at Saanich intersection

Saanich police, CRD Integrated Road Safety Unit crackdown on drivers’ cell-phone use

Police seek information after a pedestrian was hit in a crosswalk at the intersection of Goldstream Avenue and Veterans Memorial Parkway on March 3.(Google Maps)
Witnesses sought in Langford pedestrian hit and run

Suspect is older man driving four-door, gold sedan

The University of Victoria has said some of its students were impacted by an off-campus exposure to COVID-19 last weekend. (Black Press Media file photo)
University of Victoria students impacted by off-campus COVID-19 exposure

UVic has not specified where the exposure occurred

This male Dungeness can safely be harvested after passing muster. An official with Fisheries and Oceans Canada says it is not clear how well locals on the Saanich Peninsula are complying with crabbing regulations, but her comments suggest that any problems might be of a minor nature. (Department of Fisheries and Oceans/Submitted)
Sidney and Sooke record 57 crabbing violations in 2020

While recreational crab fishery has ‘compliance issues,’ no evidence of ‘large scale poaching’

Cleanup happens after an overnight flood Monday damaged areas of the Oaklands Community Centre. (Facebook/Oaklands Community Association)
Greater Victorians offer flood of support to Oaklands Community Centre

Blown hot water tank Monday night leaves staff cleaning up soggy mess

Health Minister Adrian Dix looks on as Dr. Bonnie Henry pauses for a moment as she gives her daily media briefing regarding COVID-19 for British Columbia in Victoria, B.C. THE CANADIAN PRESS/Jonathan Hayward
7 additional deaths and 542 new COVID-19 cases in B.C.

Provincial health officials reported 18 new COVID-19 cases linked to variants of concern

Anyone with information on any of these individuals is asked to call 1-800-222-TIPS (8477) or visit the website victoriacrimestoppers.ca for more information.
Greater Victoria Crime Stoppers wanted list for the week of March 2

Greater Victoria Crime Stoppers is seeking the public’s help in locating the… Continue reading

(Black Press Media file photo)
POLL: How’s your butter?

Recent reports have some Canadians giving a second look to one of… Continue reading

Chief Justice Christopher Hinkson (Office of the Chief Justice)
Judge questions whether B.C.’s top doctor appreciated right to religious freedom

Lawyer for province says Dr. Henry has outlined the reasons for her orders publicly

A sample of guns seized at the Pacific Highway border crossing from the U.S. into B.C. in 2014. Guns smuggled from the U.S. are used in criminal activity, often associated with drug gangs. (Canada Border Service Agency)
B.C. moves to seize vehicles transporting illegal firearms

Bill bans sale of imitation or BB guns to young people

The City of Duncan will implement a new pilot project targeting vandalism this spring. (File photo)
Graffiti trouble? Duncan will give you the brush and the paint to remove it

Initiative based on a successful project to protect Port Alberni from unwanted spray paint

BC Housing minister David Eby is concerned that Penticton council’s decision to close a local homeless shelter will result in a “tent city” similar to this one in Everett, Wa. (Olivia Vanni / Black Press file)
‘Disappointed and baffled’ B.C. housing minister warns of tent city in Penticton

Penticton council’s decision to close a local homeless shelter could create tent city, says David Eby

The first of Fisheries and Oceans Canada’s long-range maritime patrol aircraft—the Dash-8—becomes operational. (Photo supplied by PAL Aerospace)
Fisheries and Oceans Canada’s new De Havilland Dash-8-100 long-range surveillance air craft is capable of staying aloft for eight to 10 hours for a variety of missions up and down the B.C. coast. (Photo supplied by PAL Aerospace)
New plane will double DFO’s surveillance capacity in B.C.

The Dash-8 will fly out of Campbell River for enforcement, conservation missions

A recently published study out of UBC has found a link between life satisfaction levels and overall health. (Pixabay)
Satisfied with life? It’s likely you’re healthier for it: UBC study

UBC psychologists have found those more satisfied with their life have a 26% reduced risk of dying

Most Read