When the federal government introduced the foreign buyer ban, the intention was straightforward — to make housing more affordable for Canadians by keeping speculative foreign capital out of the market.
Nearly two years later, however, the results tell a different story. Home affordability has not improved in any meaningful way, and developers continue to face challenges bringing new housing supply to market.

What has been missing from the conversation is the broader economic picture — the powerful chain reaction that real estate activity sets off across Canada’s entire economy.
Allowing a carefully managed level of foreign investment back into the housing market could unlock economic growth, productivity gains, and fiscal stability that benefit all Canadians.

1. Real Estate’s Multiplier Effect: One Sale, Many Ripples

Real estate is far more than a transaction between a buyer and a seller — it is a catalyst for economic activity.
When a foreign investor purchases a home, particularly a new presale condominium or development unit, it triggers a long series of expenditures that ripple through dozens of sectors.

Every dollar spent on residential construction contributes approximately $1.30 to Canada’s GDP, once indirect and induced impacts are included.
That spending sustains jobs and growth in:

  • Construction and engineering
  • Architecture and urban design
  • Building materials and transportation
  • Legal, accounting, and mortgage services
  • Furniture, retail, and home-improvement sectors

Each new project injects capital, employment, and consumer spending into communities — all without any demand on public funding.

2. Foreign Capital Can Unlock Supply and Restore Confidence

One unintended consequence of the foreign buyer ban has been a slowdown in presale absorption rates — the pace at which developers can sell enough units to secure construction financing.
With fewer qualified buyers, projects stall, financing dries up, and housing supply tightens.

Allowing limited participation by foreign buyers — for example, in new developments or projects that increase rental supply — can help restore balance and confidence in the market.
More investor participation means more construction starts, more homes delivered, and ultimately, more affordability through greater supply.

3. The Spinoff Benefits: Jobs, Small Businesses, and Tax Revenue

According to the Canadian Real Estate Association, each home transaction generates roughly $50,000–$80,000 in additional economic activity through related goods and services.
Even a modest rise in foreign participation could inject hundreds of millions of dollars annually into the Canadian economy.

This spending directly benefits local tradespeople, small-business owners, and service providers — the real foundation of our economy.
At the same time, governments at every level collect higher revenues through existing tax channels, including:

Federal revenues:

  • Income taxes from jobs in construction and professional services
  • GST/HST on new home sales and real-estate-related services
  • Capital-gains and investment-income taxes

Provincial and municipal revenues (B.C. example):

  • Property Transfer Tax (PTT) on every transaction
  • Provincial Sales Tax (PST) on materials and services
  • Property taxes on new and reassessed developments

Together, these create a virtuous economic cycle: more activity leads to more tax revenue, which supports better public services — schools, healthcare, infrastructure, and community amenities.

4. Rebuilding Canada’s Global Appeal and Long-Term Growth

Foreign investors are not just buyers; many are entrepreneurs, innovators, and professionals who bring capital, ideas, and international connections.
Welcoming responsible and transparent foreign investment sends a clear message that Canada remains open, competitive, and globally engaged.

Capital flows where confidence exists — and confidence attracts innovation, entrepreneurship, and new business creation.
A balanced policy can help Canada maintain its reputation as a safe, stable, and opportunity-driven economy in an increasingly global marketplace.

5. From Policy to Prosperity: How It Improves Canadians’ Quality of Life

Economic growth is ultimately about more than GDP — it is about quality of life.
A healthy housing sector strengthens every layer of the economy:

  • Creates good jobs and raises household income
  • Generates tax revenue to fund public infrastructure
  • Encourages private-sector innovation and productivity
  • Boosts consumer confidence and local business vitality

When real estate activity is strong and well-balanced, the benefits reach far beyond homeowners.
Communities thrive, public services improve, and the economy becomes more resilient.

6. A Balanced Path Forward

Reintroducing foreign investment into the housing market does not mean reopening the floodgates.
It means smart calibration — allowing participation where it supports housing creation, construction activity, and local economic growth, while maintaining safeguards that protect affordability for Canadians.

If implemented responsibly, a revised policy could:

  • Restore balance and liquidity to the housing sector
  • Stimulate GDP growth through productivity and investment
  • Increase tax revenue for essential public services
  • Strengthen Canada’s global economic position

In short, this is not about foreign money displacing Canadians — it is about foreign capital supporting Canadian prosperity.

Conclusion: Reigniting Canada’s Economic Engine

The discussion around the foreign buyer ban should not focus solely on housing prices.
It should also recognize the broader economic engine that real estate drives — one that powers construction, employment, tax revenue, and innovation.

By easing the ban in a measured and transparent way, Canada can revitalize its housing sector, stimulate growth, and strengthen its fiscal foundation for generations to come.