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

KPU’s Cloverdale campus to host open house Nov. 20

Registrants have a chance to win prizes, if they sign up early

Surrey RCMP doesn’t expect big hit in light of projected $10M cut in B.C. budget

Public safety minister says RCMP informed province about projected budget deficit

École Salish Secondary held its official opening Nov. 12

Cloverdale school unveils Coast Salish welcome post

South Surrey students, staff prepare for 15th Christmas dinner

Deadline to register for festive affair at Elgin Park Secondary is Nov. 27

Surrey’s Sourdif among A-list ‘Players to Watch’ for NHL Entry Draft in Monteal next June

The right-shot forward has eight goals and nine assists with Vancouver Giants this season

VIDEO: Disney Plus adds disclaimer about racist stereotypes

Disney’s disclaimer is a good way to begin discussion about the larger issue of racism

First Nations ‘optimistic’ about road upgrades after Horgan visits site of fatal bus crash

Premier travelled Bamfield Main road, where bus flipped last September and two students were killed

Delays seen on some Metro Vancouver bus routes as transit strike ramps up

According to TransLink, routes in downtown Vancouver are bearing the brunt of the delays

Princeton couple pays for dream vacation with 840,000 grocery store points

It’s easy if you know what you are doing, they say

B.C. man facing 18 charges after hidden camera found in Kelowna winery washroom

The camera was found at Summerhill Winery on Aug. 23

No new rules needed to ensure timely youth justice, Supreme Court says

Charter of Rights and Freedoms says someone charged with an offence has the right to be tried within a reasonable time

Seguin lifts surging Stars to 4-2 win over Canucks

Dallas is 6-0-1 in last seven outings

UPDATE: Metro Vancouver bus drivers to refuse overtime as transit strike escalates

Overtime ban could disrupt 10-15 per cent of bus service in Metro Vancouver

Most Read