If you’ve followed the Vancouver Real Estate Market, you already know the story, the Foreign Buyer Ban was supposed to cool things down and make homes more affordable. But has it really worked that way?
When the federal government introduced the Foreign Buyer Ban, the goal seemed clear — make homes more affordable by keeping speculative money out of the Canadian housing market.
It sounded sensible on paper. But almost two years later, affordability hasn’t improved, supply is still falling short, and developers are struggling to get new projects off the ground.
So it’s worth asking: Is this ban really helping anyone?
The Truth About the Foreign Buyer Ban
1. The Real Problem Isn’t Foreign Buyers — It’s Supply
Canada’s housing challenge has never been about too many foreign buyers; it’s about not building enough homes.
Before the Foreign Buyer Ban, non-residents made up less than 5% of total transactions in most major cities, including Vancouver. Removing that small slice of demand doesn’t fix the fact that our population keeps growing faster than our housing stock.
Let’s be honest — a family looking for a condo in Burnaby or a townhouse in Surrey was never competing with someone buying a $4-million waterfront home in West Vancouver.
A smarter solution would be a price-based threshold:
- In Vancouver, the limit could be around $4 million.
- In Victoria or Kelowna, around $2.5–3 million.
- In smaller resort or secondary markets, perhaps $1.5–2 million.
This approach would let foreign investors participate in the luxury segment that doesn’t affect affordability, while protecting local homebuyers.
2. The Ban Slows Down New Construction
One of the biggest unintended consequences of the ban is its impact on new housing supply.
Developers rely on presales to secure financing and start construction. With fewer eligible buyers, many projects are delayed — or cancelled altogether. When that happens, we lose future homes, rental units, and construction jobs.
Foreign investors often purchase pre-construction condos, providing early capital that helps projects move forward. Cutting off that investment hurts everyone.
Allowing non-residents to buy new or pre-construction homes could help jump-start development, keep tradespeople working, and bring more homes to market faster.
3. Luxury Real Estate Isn’t the Problem
For decades, Canada has been viewed as a safe and stable place to invest. But the foreign buyer ban has shaken that image.
Countries like the U.K. and Australia manage affordability through targeted taxes instead of outright bans. Their approach keeps markets stable while still welcoming global capital — something Canada could learn from.
Easing the ban, with smart guardrails, would send a strong message that Canada remains open, confident, and forward-looking, even amid high interest rates and construction slowdowns.
4. Investor Confidence Matters
Canada has always been seen as a safe and welcoming place to invest. But with the current ban, that perception has taken a hit.
Other countries, like the U.K. and Australia, have opted for targeted taxes rather than full bans. These systems allow them to manage affordability while still attracting international investment — something we could learn from.
Easing the ban (with smart guardrails) could send a strong signal that Canada remains open, stable, and confident, especially when our housing and construction industries are facing headwinds from higher interest rates and labour shortages.
5. One Policy Doesn’t Fit Every Market
Real estate markets across Canada are incredibly diverse. What makes sense in downtown Vancouver doesn’t necessarily apply in Kamloops or Halifax.
A regionally adjusted model would be far more effective. Each province or municipality could set its own threshold based on median home prices, aligning the policy with local realities instead of using a one-size-fits-all rule.
6. Finding Balance
The foreign buyer ban was created with good intentions — but good intentions don’t always make good policy. Rather than blocking capital that helps build more homes, we should focus on smarter, balanced solutions:
- Allow foreign buyers to purchase homes above a set price threshold.
- Exempt presales and new construction to support development.
- Add transparency and tax measures to prevent speculation.
- Continuously monitor and adjust thresholds based on real data.
This kind of approach would boost housing supply, support local jobs, and strengthen the overall market, without hurting affordability.
Final Thoughts on Vancouver Real Estate Market
Canada doesn’t need more restrictions; it needs more homes.
The foreign buyer ban may sound good politically, but it hasn’t solved the real issue — a lack of supply.
If we want a healthier, more sustainable Vancouver real estate market, we need policies that encourage construction, attract investment, and reflect local needs.
Easing the ban could be the first step toward achieving exactly that.
If you’re interested in learning more about the Vancouver real estate market or exploring upcoming presale condo opportunities, reach out to Vancouver Presale Realtor® Eunice Lee at Vancouver Presale Projects.
Vancouver Presale Realtor® Eunice Lee is a trusted presale condo expert and real estate industry veteran with over a decade of experience representing clients across the Lower Mainland. Known for her professionalism, integrity, and attention to detail, she consistently goes above and beyond to help clients achieve their real estate goals.
Fluent in English, Korean, and Japanese, Eunice bridges communities and provides a personalized approach to every transaction. Whether you’re buying your first home, investing in a presale, or simply exploring the market, she’s here to guide you every step of the way.
📞 Contact Vancouver Presale Realtor® Eunice Lee, today to discuss your next move in Vancouver’s dynamic housing market.