Public support for restrictions on foreign homebuyers, such as taxes and purchase bans, has been strong for several years. However, as economic uncertainty slows an already weak condo pre-sales market and hampers plans for new rental developments, there’s renewed debate about whether current rules on foreign buyers should be revised.

Currently, Canada has a federal ban on non-Canadians buying residential properties in key urban areas, in effect until January 2027, while British Columbia also imposes a 20% foreign buyer tax and other housing-related levies.

Some developers and real estate professionals argue that easing restrictions on foreign investment—especially for new builds—could provide the capital needed to get stalled projects moving, particularly rental developments that are harder to finance. They point to examples like Australia, which recently banned foreign buyers from purchasing existing homes but still allows investment in new housing.

While some in the industry support targeted changes to attract foreign capital, federal political parties have largely stayed silent or doubled down on restrictions. Public sentiment remains strongly in favor of bans, especially among older voters. Younger voters, though more focused on housing affordability, may not be receptive to allowing foreign investors more access to the market.

Academic analysis also highlights that restrictions have helped temper housing price increases, but stresses that better oversight and regulation would be needed if Canada were to allow more foreign involvement in new housing projects.