Fresh challenges as Canada extends ban on foreign property buyers
For Nigerians and other immigrants striving to secure homes in Canada, the road to finding suitable housing just got longer as the North American nation extends its ban on foreign property buyers. Originally set to expire by January 1, 2025, Canadian authorities have now stretched this prohibition by three additional years, pushing the deadline to January 1, 2027. The rationale behind this measure is to prioritize Canadian citizens’ access to housing amidst an escalating housing crisis.
This decision, expected to impact Nigerians and other foreign nationals residing in Canada, is a strategic response to the mounting challenges of the housing sector, which have forced many immigrants, including Nigerians, into unconventional living arrangements such as cemeteries and streets.
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Canada, mirroring Nigeria’s struggle with rising housing deficits and affordability issues, is taking proactive steps to address its housing crisis. Part of these efforts includes curbing foreign ownership of homes within its borders. Canadian authorities attribute the dwindling number of owner-occupied homes to commercial and speculative purchases, predominantly driven by foreign investors.
In contrast to Nigeria’s approach, the Canadian government is actively pursuing initiatives to accelerate home construction and improve affordability for its citizens. Chrystia Freeland, Canada’s Deputy Prime Minister, emphasized the importance of ensuring homes serve as dwellings rather than speculative financial assets. By extending the ban on foreign property buyers, the government aims to reestablish housing as a fundamental resource for Canadian families and businesses alike.
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The enactment of the Prohibition on the Purchase of Residential Property by Non-Canadians Act in 2022 underscores Canada’s commitment to preserving its housing market for indigenous residents. The Department of Finance affirms its resolve to uphold restrictions against foreign commercial entities and non-Canadian individuals or permanent residents seeking to acquire residential properties.
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Recent census data reveals a concerning trend, with the percentage of Canadians residing in owner-occupied homes dropping from 69 percent to 66.5 percent between 2016 and 2021—the lowest figure since 2022.
Similar to Nigeria’s bustling metropolis, Lagos, Canada experiences a bustling rental market grappling with high demand, limited supply, and affordability challenges. Consequently, the nation faces a surge in homelessness, forcing tens of thousands out of both rental and real estate markets and into the streets.
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A sobering report by researchers sheds light on the gravity of homelessness across Canada, extending beyond major cities to rural areas. Quebec, a prominent province, witnesses a notable increase in homelessness, with half of its homeless population now residing in rural regions, marking a shift from previous concentrations primarily in Montreal.
In essence, Canada’s decision to extend its ban on foreign property buyers underscores its commitment to safeguarding housing accessibility for its citizens amidst a mounting housing crisis, reminiscent of the challenges faced by nations like Nigeria.
Source: BusinessDay
