The Canadian government announced on Sunday that it would extend the restriction on foreign ownership of Canadian real estate by two years to address concerns about Canadians being priced out of cities and towns.
Canada’s housing affordability challenge has been exacerbated by an influx of immigrants and foreign students, driving up demand while construction is hampered by rising costs. Deputy Prime Minister Chrystia Freeland stated that the ban, initially set to expire on January 1, 2025, will now be extended to January 1, 2027, as part of comprehensive efforts to enhance housing affordability.
Last month, Canada implemented a two-year restriction on foreign student visas and ceased issuing work permits to some graduates to manage the impact of immigration on housing challenges. The housing issue, linked to population growth driven by immigration, has led to rising costs and strained public services, affecting Prime Minister Justin Trudeau’s popularity.
