Non-residences make up less than 5% of property owners in Toronto and Vancouver

December 18th, 2017  |  Canadian Business

Back in the spring, Statistics Canada reported that only 4.7% of home sales in Toronto and surrounding area could be attributed to non-resident buyers. Stats Canada, along with the Canada Mortgage and Housing Corporation, released another report today stating that the numbers are holding steady below 5%. In Toronto non-residents made up 3.4% of home sales, and made up slightly over 7% of condo owners.

Vancouver, like Toronto, has also experienced a scorching housing market, which many suspected was thanks in part to foreign buyers. The most recent numbers however show that non-residents may not be to blame. Vancouver’s numbers, while slightly higher than Toronto’s, are still relatively low. Only 4.8% of homebuyers in Vancouver were non-residents.

Both Toronto and Vancouver have implemented an additional tax to those outside of country who wish to purchase property in either cities or their respective surrounding areas. This was done in an attempt to help cool the housing market in both Canadian cities. And some believe that it may be working.

"The lack of growth in Toronto and Vancouver, combined with the increases in Montreal, indicate the possibility of a shift from these centers after the introduction of foreign buyers taxes in Ontario and British Columbia," said CMHC's chief economist Bob Dugan.

In addition to Toronto and Vancouver, the CMHC looked at non-resident ownership percentages in 17 of Canada's other biggest cities. Finding show that in the vast majority of them, the percentages were below one per cent.