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

The Association of Communities Against Abuse continues to build awareness and offer support

A new support and empowerment group has also been started in Stettler

Lighting up the neighbourhood for a terrific cause

Every year, the Maruk family puts up an amazing Christmas lights show

Histories of our treasured Christmas traditions

Why we do what we do during the festive season

The best caesar in Canada can be found in Sylvan Lake

Kjeryn Dakin’s Tragically Hips caesar won the national Best Caesar in Town competition

Stettler Festival of Lights brings in a net profit of more than $103,000

“I am always overwhelmed by the generosity of this town and surrounding areas.”

VIDEO: Merriam-Webster declares ‘they’ its 2019 word of the year

Declared word of year based on a 313-per-cent increase in look-ups on the company’s search site

Day parole revoked for man who strangled wife, buried body in their Calgary home

Parole Board revoked Allan Shyback’s day parole after he had sex with a massage parlour worker

Toronto Raptors, Don Cherry top the list of Canadians’ Google searches in 2019

‘Champions’ was the theme of the last year, Google said

Alberta plans to reduce surgery wait-times by building operating rooms, using private clinics

Health minister says goal is to have 80,000 more surgeries done over the next 3 1/2 years

Sylvan Lake woman charged with fraud over $500,000

Rimbey RCMP launched an investigation in July 2019 with the suspect turning herself in on Aug. 30

VIDEO: Calgary man narrowly escapes from avalanche while running at Lake Louise

Bryon Howard caught the entire wild experience on camera

No jail but big fine for Alberta store owner convicted of illegal gun sales

At the conclusion of Monday’s hearing, the Crown stayed the remainder of the charges against the father

Anti-money laundering agency warns casinos to watch gamers playing with bank drafts

Financial Transactions and Reports Analysis Centre of Canada, known as Fintrac, issues operational alert

China hints at national security trials for 2 Canadians detained for one year

The two Canadians’ detention is largely seen as retaliation for the arrest of a Huawei exec

Most Read