Canada extends restriction on foreign housing ownership by two years.

Joy ChukwuFebruary 6, 20241 Mins read382

The Canadian government has announced that it will extend the restriction on foreign housing ownership by an additional two years. This move comes in response to growing concerns that the influx of immigrants and foreign students is driving up housing prices, posing a risk of making Canadian cities and towns unaffordable for residents.

Canada is grappling with a housing affordability crisis, exacerbated by an influx of immigrants and foreign students. Despite rising construction costs, demand for housing continues to rise, posing a challenge.

Chrystia Freeland, the Canadian Deputy Prime Minister, emphasized on Sunday the government’s commitment to addressing the affordability issue. She stated:

“To employ all available measures in making housing more accessible for Canadians, the current ban on foreign ownership of Canadian housing, slated to conclude on January 1, 2025, will now be extended until January 1, 2027.”

Foreign ownership has been identified as a key factor contributing to the concerns of Canadians being priced out of their local housing markets. To further manage the situation, Canada recently announced a two-year restriction on foreign student visas. It halted the issuance of work permits to certain graduates, aiming to control the impact of immigration on the housing crisis.

The rapid expansion of the population due to immigration has strained public services such as healthcare and education, further escalating housing costs. Public opinion surveys suggest that the housing crisis, along with associated issues, has negatively influenced the support for Liberal Prime Minister Justin Trudeau, potentially affecting his standing in an upcoming election.