If non-resident ownership is 4.8% in The City of Toronto, whats the big deal?

If non-resident ownership is 4.8% in The City of Toronto, whats the big deal? During the summer of 2016, there were many estimates that foreign ownership is less than 5% (CBC.ca). Statistics Canada has recently confirmed these initial estimates (Statscan.gc.gov). At face value, this seems to be good news, but in reality, we need to look at the distribution along the price spectrum to make a decision.

Better Dwellings has (betterdwelling.com) has cleverly pointed out that the foreign buyers tend to buy more affordable units. As shown below, residents of Toronto has a median home value of $583,000, while foreign owners have a median home value of $492,000, which is 15.6% lower. This is dangerous because heavier foreign ownership in cheaper and new units (BetterDwellings.com) means that there is smaller supply of affordable homes for local residents, especially those are barely able to squeek on-side.

 

Source: BetterDwellings.com

 

 

Hadi is Honours civil of engineering graduate with solid project management experience in the construction industry. Solutions-focused, results-oriented with strong business acumen and entrepreneurial spirit. Currently, he is working as an assistant site-superintendant with Darcon Inc. at one of Vaughan's biggest developments, Centro Square.

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