Housing Industry Calls for Loosening Restrictions on Foreign Investment in Canadian Homes

Strategic Insights -

Major players in British Columbia's housing industry are warning that housing supply will continue to slow down and prices will rise if restrictions on foreign investment in Canadian homes are not relaxed. The industry players, who include companies such as Beedie Living and Westbank, have written to Prime Minister Mark Carney and federal Housing Minister Gregor Robertson outlining their concerns. They argue that foreign investment is essential to provide capital for condo projects, which are struggling due to high construction costs, high land prices, municipal fees, and erratic U.S. tariff policies.

The letter notes that foreign investment should be handled differently from the way it was before, with some limits, and references an Australian policy that restricts foreign investment in established homes but allows it for new builds and presales. Industry players also point out that foreign investors represent a small proportion of Canadian homeowners, but can have an outsize impact when all their investing is done in a few targeted neighbourhoods.

Key Takeaways:

  • Industry players in British Columbia's housing industry are warning of a housing supply crisis if restrictions on foreign investment are not relaxed.
  • The industry relies on foreign investment to provide capital for condo projects, which are struggling due to high construction costs, municipal fees, and erratic U.S. tariff policies.
  • Foreign investors represent a small proportion of Canadian homeowners, but can have an outsize impact when all their investing is done in a few targeted neighbourhoods.
  • Industry players argue that foreign investment should be handled differently from the way it was before, with some limits, and reference an Australian policy that allows foreign investment in new builds and presales.
  • The current downturn is worse than the industry experienced in 2008 during the global financial crisis, with construction activity plummeting and several developers turning to rental.
  • Chris Gardner, CEO of the Independent Contractors and Businesses Association, says the construction industry in B.C. is being devastated, with companies putting projects on hold due to uncertain costs and financing.
  • Industry players are calling for policy makers to learn from past mistakes and implement policies that work for British Columbians, but avoid a free-for-all.

Statistics:

  • The letter notes that there are about 24,000 unsold units in Toronto by the end of June 2025, while sales are at a dribble.
  • The Greater Toronto and Hamilton Area saw only 502 condo sales in the second quarter of 2025.
  • Statistics Canada estimates that foreign investors represent between 2-6% of Canadian homeowners.
  • The federal government banned foreign housing investment in larger metropolitan areas in 2023 and has extended that ban to 2027.

Sources:

  • A letter sent to Prime Minister Mark Carney and federal Housing Minister Gregor Robertson by industry players in British Columbia's housing industry.
  • A report from Urbanation, a Toronto company that tracks the condo market, dated July 15, 2025.
  • Statistics Canada estimates on foreign ownership of Canadian homes.
  • The Globe and Mail article, dated August 23, 2023.