B.C. real estate experts say easing foreign-buyer rules could help supply

British Columbia's housing market is wobbling, with stagnant pre-sales and slowed construction prompting calls for a reevaluation of foreign buyer restrictions. Brendon Ogmundson, chief economist at the BC Real Estate Association, suggests a targeted approach to allow foreign investments that would contribute to new housing supply. He underscores that current mortgage payments consume 40-60% of household income, creating significant affordability challenges for younger Canadians. Although low pre-sale numbers may suggest short-term price relief, Ogmundson cautions this could lead to future housing shortages. The cycle of slow construction followed by demand spikes has historically plagued Metro Vancouver.

Currently, a federal ban on foreign buyers is set to last until 2027, with a 20% tax in B. C. A CityNews-Leger poll indicates that a substantial majority of Canadians favor maintaining this ban, regardless of political shifts. Experts worry that while popular, such policies could have adverse effects on long-term housing affordability.