For several years, there has been widespread public support for taxing and restricting foreign homebuyers.
However, with economic uncertainty, rising tariffs, and volatility in global stock markets further slowing an already weak local pre-sale condo market and delaying purpose-built rental projects, discussions about the advantages and disadvantages of adjusting foreign buyer rules have resurfaced.

Current Landscape of the Discussion

The conversation around foreign buyers is unfolding across the development industry, the federal election scene, and academic circles.

What Are the Current Rules?
At the federal level, Canada has a two-year ban (extended until January 2027) on non-Canadians purchasing residential properties in major urban centres and nearby regions.
In British Columbia, the NDP government raised the foreign buyers' tax to 20% in 2017 and introduced additional speculation and vacancy taxes.

Industry Perspectives
An increasing number of real estate professionals are advocating for partially reopening the market to foreign investors to help fund complex, higher-cost developments.
In March, Vancouver real estate marketer Bob Rennie proposed a model where both local and foreign investors could contribute to building long-term rental housing—on the condition that they commit to holding these properties for at least 25 years.

This strategy could provide developers with the capital needed to move projects forward. Currently, developers struggle to secure enough presale buyers to launch condo construction, and building purpose-built rental units remains challenging due to the higher upfront cash requirements.

“If governments aren’t willing to lower their fees or ease building regulations, I’ve been advocating for allowing foreign investment in new homes again,” said Evan Allegretto, B.C. president of Vancouver-based Intracorp Homes.

“Most of these homes eventually enter the rental market anyway. Allowing foreigners to purchase new homes—similar to what Australia recently implemented—could inject the necessary capital to speed up project starts.”

In response to soaring housing prices, Australia recently introduced a two-year ban on foreign purchases of existing homes, while still permitting foreigners to buy new properties.

Balancing Protection and Capital in the Housing Market

Allowing selective foreign investment could protect parts of the local market from price surges while injecting much-needed capital into new developments, explained Evan Allegretto of Intracorp Homes.

Brent Sawchyn, CEO of Vancouver-based PC Urban, also supports adjusting foreign buyer rules. He noted that developers like PC Urban often work around current restrictions by investing more upfront, negotiating for policy changes, requesting minor density increases, or deferring development charges to keep projects viable.

Federal Political Party Positions

• NDP: Leader Jagmeet Singh advocates for a permanent ban on foreign homebuyers to prevent speculative price increases.

• Liberals and Conservatives: Neither party has officially commented on modifying foreign buyer rules. Although Bob Rennie has discussed a rental investment model with Liberal figure Mark Carney, no formal position has been announced. Both parties declined to respond to Postmedia inquiries.

Public Opinion
A March survey of 796 British Columbians by Research Co. found that 75% support a two-year ban on non-Canadians buying residential properties.
However, support for proposals allowing foreign investors to fund rental housing was not measured.

In a national poll from early April:

• 25% of voters aged 18–34 ranked housing as the most important issue, compared to 12% of older voters.

• Younger voters, more concerned about affordability, are less likely to favor models that involve enabling foreign investors to become landlords, noted Mario Canseco, president of Research Co.

Academic Perspective
A recent paper in the Journal of Ethnic and Migration Studies argues that restrictions on foreign capital have helped moderate price increases in cities like Vancouver.

Andy Yan (SFU City Program), Joshua Gordon (McMaster University), and David Ley (UBC) suggest:

• Bans targeting foreign money flows are different from policies simply restricting foreign buyers based on citizenship.

• Australia’s approach—allowing foreigners to buy only new properties while maintaining strict oversight—is more robust than Canada’s looser system.

Yan warned that allowing foreign investment to fund private rental developments risks repeating the failures of previous immigrant investor programs, which were criticized for lacking the promised economic benefits and being prone to abuse.

Is it time for Canada to relax restrictions on foreign buyers and investment in real estate?