After two years of living with Canada's foreign buyer prohibition, it's time for an honest conversation about what this policy has actually accomplished and where we go from here. As someone who's been working in Vancouver real estate through some of the most turbulent times our market has ever seen, I've had a front-row seat to these changes. But the effects of this policy extend far beyond any single city—they're shaping real estate markets from coast to coast.
The federal ban that started in January 2023 was supposed to cool Canada's housing markets and make homes more affordable for Canadians. The government extended it through to January 2027, which tells us they believe it's working. But the reality across the country is more complicated than the headlines suggest.
Let's start with some context. Before this ban came into effect, foreign buyers were already a pretty small slice of our national market. We're talking about maybe one to five percent of total sales in major centres, depending on the year and location. During the pandemic boom of 2021, when international travel was basically shut down, markets across Canada went absolutely crazy with record sales and prices. Where were all those foreign buyers then? They weren't here, yet prices still skyrocketed from Vancouver to Halifax. That should tell us something about what's really driving our housing challenges nationwide. This was an interest rate driven market. Creating affordability by offering cheaper lending.
The truth is, Canada's housing story is much more about supply and demand fundamentals than it is about foreign investment. We've got interprovincial migration, local investors active in markets everywhere, and frankly, we just haven't been building enough homes to keep up with demand across the country. The pandemic showed us that domestic factors matter way more than international buyers when it comes to price movements, whether you're in Vancouver, Toronto, Calgary, or Halifax.
Here's what worries me about where we're headed as a nation. We've just been through an incredibly uncertain period. Interest rates have been all over the map, construction costs have gone through the roof, and developers from British Columbia to the Maritimes are having a tough time making projects work financially. The math does not work for investors to enter the marketplace. The last thing we need right now is more uncertainty or policies that make it harder to attract the investment we need to build the housing supply this country desperately requires.
Canada has always been built by people who chose to make this country their home. That's our strength, and it's what makes cities like Calgary, Montreal, and yes, Vancouver so dynamic and attractive. When we put up barriers that make it harder for newcomers to invest in our communities, we're not just affecting foreign buyers. We're affecting our ability to grow and prosper as a nation.
The real solution to housing affordability isn't about keeping certain buyers out of the market. It's about creating more housing options for everyone, everywhere. That means working with all levels of government to streamline approvals, supporting innovative development projects in growing centres like Edmonton and Halifax, and yes, welcoming investment from people who want to be part of building stronger communities across Canada.
As we look ahead, I think it's time to seriously reconsider whether these restrictions are still serving us well nationally. The world is changing, and we need to be positioned to take advantage of the opportunities that it brings. Canada has always been a global nation, and our future depends on staying connected to the world, not building walls around ourselves.
Who is the author, Andrew Carros?
Andrew Carros, Chief Operating Officer at Engel & Völkers Vancouver since 2019, brings 23 years of real estate expertise to the forefront of international property conversations. Leading operations throughout the Lower Mainland, Andrew has successfully guided his team through significant market shifts and policy changes affecting foreign investment in Canadian real estate.
Working with a globally recognized brand, Andrew specializes in developing collaborative frameworks that enhance value propositions for both individual advisors and brokerages as a whole. His forward-thinking approach has been particularly valuable in addressing the challenges presented by recent government regulations on foreign buyers and immigration policies.
Andrew's perspective on the intersection of global mobility, immigration, and real estate makes him an authoritative voice on how industry professionals can better serve clients navigating cross-border transactions in today's complex regulatory environment.
