BCREA
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If you’ve glanced at media headlines in the past few weeks, you know that foreign buyers of real estate have gotten a lot of attention. Concerns about housing affordability in Vancouver spurred the interest, with calls for the provincial government to take action on foreign buyers.
In many parts of BC, real estate is generally a popular topic and opinions abound. But, when it comes to public policy, opinions aren’t enough. That’s why BCREA’s Economics Department decided to examine whether foreign buyers actually make housing less affordable.
It’s common knowledge that no hard number exists on foreign buyers in the Metro Vancouver housing market. However, the available data and analysis on the housing stock and flow of residential transactions in the region suggest that foreign ownership of housing is considerably less than five per cent of the housing stock, and not more than five per cent of sales activity.
As a result of this research, BCREA has drawn the following conclusions:
- A policy response to curb foreign investment is not necessary for the public good at this time.
- To gain further insight into foreign investment in housing, the government could attach a residency declaration somewhere in the land transfer form process, or other practical approach.
More information:
- Opinion: Facts Fail to Support Foreign-Buyer Fears (Vancouver Sun, June 4)
- Market Implications of Foreign Buyers (BCREA, June)
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