In a move that is set to exacerbate the housing plight of Nigerians and other immigrants in Canada, the Canadian government has extended its ban on the sale of residential property to foreign buyers until January 1, 2027. Originally set to expire on January 1, 2025, this decision comes as part of Canada’s concerted efforts to tackle the country’s escalating housing crisis and improve access to homes for its citizens.
The extension of the foreign property buyers’ ban is a significant blow to immigrants who have been facing severe challenges in securing accommodation, forcing some to resort to unconventional living spaces such as cemeteries and streets. Canada’s housing market, much like Nigeria’s, is plagued by a growing deficit and skyrocketing affordability issues. However, unlike Nigeria, Canada has taken decisive steps to address these problems, with the prohibition of foreign homeownership being a key strategy.
The Canadian authorities have attributed the decline in owner-occupied homes to commercial and speculative buying, predominantly by foreigners. In response, the government has committed to constructing more homes swiftly and restoring the feasibility of homeownership for a larger number of Canadians. Deputy Prime Minister Chrystia Freeland emphasized that the extension of the foreign buyer ban is aimed at ensuring residential properties serve as homes for Canadian families rather than speculative investment assets.
The Prohibition on the Purchase of Residential Property by Non-Canadians Act was enacted in 2022, reflecting the government’s determination to reserve the housing market for the country’s residents and citizens. This legislation bars international investors from purchasing residential properties in Canada, a measure believed to safeguard the availability of housing for the indigenous population.
According to the Canadian Department of Finance, the ban continues to apply to foreign commercial entities and individuals who are neither Canadian citizens nor permanent residents. This policy decision comes amid concerns over the declining rate of homeownership in Canada, which fell from 69 percent in 2016 to 66.5 percent in 2021, marking the lowest level since 2022.
Canada’s significant immigrant population, akin to Lagos’s demographic in Nigeria, has resulted in a highly competitive rental market characterized by high demand, limited supply, and escalating prices. Consequently, the country is experiencing a homelessness crisis, with an increasing number of individuals unable to afford rental or real estate prices, thus resorting to living on the streets. A recent study has indicated that homelessness is not only confined to major cities but is also spreading to smaller towns across Canada. In Quebec, for instance, rural areas now house half of the province’s homeless population, a shift from the previous concentration in Montreal.
This extended ban on property sales to foreigners in Canada underscores the government’s resolve to address the housing crisis head-on. However, it also highlights the challenges faced by immigrants in navigating the housing market, prompting a reconsideration of their residential status in the country. As Canada grapples with these complex issues, the impact on the immigrant community remains profound, with the quest for affordable and accessible housing continuing to be a critical concern.
