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

VIDEO: Gone Country success means so much to cancer patient

Mother of three, recovering from breast cancer treatment, makes it to seventh annual charity concert

VIDEO: Rural Langley house saved from quick spreading brush fire

Dry weather helped fuel a blaze believed started by faulty farm equipment

A chance to dance with a legend

Langley City Summer Series presented tributes to famous performers

Langley – revving up for the cause

Two local cancer patients receive a bit of financial aid from a recent Langley charity car show

LETTER: How about a compromise in Fort Langley?

Maybe everything doesn’t have to be demolished in the village

Food fight: Liberals, Tories trade shots as pre-campaign battles intensify

Health Canada released an overhauled document that did away with traditional food groups and portion sizes

Okanagan Air Cadet challenges gender-exclusive haircut policy

Haircut regulation inspires challenge around gender identity

Pride flags stolen from Lower Mainland church

Went missing sometime Friday night, says Maple Ridge reverend

25 new wheelchair-accessible cabins open at Cultus Lake Provincial Park

Maple Bay Campground is now home to 25 new wheelchair friendly cabins, a first for BC Parks

VIDEO: Bystander training gains traction as tool to prevent sexual harassment, violence

Julia Gartley was sexually assaulted after an event, and no one stepped in to help

Two brands of ice cream sandwiches recalled due to presence of metal

The Canadian Food Inspection Agency issued a recall on Iceberg and Originale Augustin brands

Sexual assaults, extortion on the rise even as crime rates stay low: Stats Canada

Rates of police-reported sexual assault rose for the fourth year in a row

Vancouver Island teens missing after vehicle found ablaze near Dease Lake, BC

RCMP say a body discovered nearby not one of the missing teens

Most Read