A sharp rise in average housing prices led the Canadian government to pass a law banning foreign investors from buying up property.
The law bans nearly all foreign investors from purchasing Canadian property for a period of two years. Aside from possible foreign backlash, the move has transformed into a battle over progressive narratives, with Canadian Prime Minister Justin Trudeau attempting to justify the decision along progressive lines while detractors attempt to label the decision as anti-progressive.
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“The desirability of Canadian homes is attracting profiteers, wealthy corporations, and foreign investors,” the campaign website of Trudeau’s liberal party said last year, according to CNN Business. “This is leading to a real problem of underused and vacant housing, rampant speculation, and skyrocketing prices. Homes are for people, not investors.”
Statements on the website currently back up this sentiment, touting Sunday’s law as an election promise fulfilled.
Opponents of the bill, primarily the Canadian Real Estate Association, argue that the law jeopardizes Canada’s progressive image.
“Canada has built a reputation as a multicultural nation that welcomes people from around the world. As currently proposed, the prohibition on the purchase of residential property by non-Canadians can impact our reputation as a welcoming nation,” a statement from the group said. “The potential benefits of the ban are likely to be modest.”
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Aside from ideological issues, the CREA expressed fear that Mexico and the United States would release retaliatory measures in response, jeopardizing Canadian foreign property investment. Many Canadians own property in the other North American countries in order to escape the cold Canadian winters.
The spike in Canadian home prices started during the COVID-19 pandemic, a pattern common in most countries. The average price for Canadian houses peaked in February at $800,000 but has been in steady decline ever since, CNN Business reported.
