Canada Unveils Major Housing Reform to Control Costs and Foreign Investment
📍 Ottawa | 10 December 2025
📰 By TGV World News Desk
🇨🇦 Canada Announces New National Housing Reform to Tackle Rising Costs and Foreign Investment Pressure
In a major policy shift aimed at addressing one of the country’s most pressing economic challenges, Canada has unveiled a sweeping National Housing Reform Plan designed to curb foreign ownership pressures, expand affordable housing, and stabilise the rapidly rising cost of living.
According to the Canadian Ministry of Housing and Infrastructure, this reform marks “a decisive national effort to rebalance the housing market and restore affordability for Canadian families.”
The announcement arrives amid widespread concerns over skyrocketing rents, limited housing supply, and intensified global investment in Canadian property markets — particularly in Toronto, Vancouver, and Montreal.
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🏠 Why Canada Introduced the Housing Reform Now
A policy briefing from the Canada Mortgage and Housing Corporation (CMHC) indicates:
📌 Housing affordability is at its worst level in 30 years
📌 Foreign investment surged in metropolitan real estate
📌 Population growth accelerated due to immigration and student entry
📌 New construction failed to match demand
Economists warn that without immediate policy action, Canada risked entering a prolonged housing crisis.
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🇨🇦 Key Features of Canada’s New Housing Reform Plan
🔹 1. Extended Ban on Foreign Home Purchases
Canada’s temporary foreign buyers ban — first introduced in 2023 — has been extended and expanded.
New Provisions Include:
🚫 Ban applies to more property classes
🚫 Penalties increased for violation
🚫 Corporate loopholes closed
Officials say this step is essential to “prioritize homes for residents, not speculation.”
🔹 2. Federal Funding to Build 500,000 Affordable Homes
The government will inject billions into a new national home-building strategy.
Focus Areas:
🏘 Affordable housing
🧱 Indigenous community housing
🛠 Rapid modular construction projects
🏙 Urban rental expansions
The plan aims to reverse the national housing shortage within 5–10 years.
🔹 3. Restrictions on Short-Term Rentals (Airbnb, VRBO)
Cities like Toronto and Vancouver have reported excessive short-term rental conversions.
The new law includes:
📉 Limits on non-primary residences as short stays
📝 Mandatory federal registration for property hosts
💸 Higher taxes on non-compliant owners
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🔹 4. New Guidelines for International Students and Work Permit Holders
The surge in international student arrivals has placed strain on local housing.
Canada will now require:
🏫 Verified accommodation plans before visa approval
🏢 Colleges/universities to expand housing
📉 Reduced intake in overcrowded cities
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🔹 5. National Anti-Speculation Tax on Vacant Properties
A new tax targets investors who keep homes empty to raise prices.
Revenue will support low-income housing programs.
🌎 Global Impact: Why This News Matters Worldwide
🇺🇸 United States
U.S.-based investors monitoring Canada’s real estate policies say the reforms may shift capital flow back toward American markets.
🇮🇳 India
Canada’s student and immigration reforms may impact thousands of Indian families, as India remains Canada’s largest source of newcomers.
🇨🇳 China
Chinese investment groups — previously strong buyers in Vancouver — are reassessing market strategies.
🇬🇧 United Kingdom
UK economic analysts connected Canada’s reforms to a broader trend of Western nations tightening real-estate regulations.
📊 What Experts Predict
According to CMHC data and economist reports:
📈 If the reforms succeed:
Housing becomes more affordable
Rental supply increases
Foreign speculation declines
Market stability improves
📉 If implementation is weak:
Prices may continue rising
Rental shortages deepen
Black-market rentals grow
Investor migration shifts to Alberta and Quebec
🔍 Government Statements
🇨🇦 Canadian Housing Minister
“We are taking decisive action to ensure every Canadian has access to a safe, affordable home.”
📉 Opposition Response
Opposition leaders argue that the plan “does not address construction labour shortages” and may squeeze small property owners.
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🧭 Long-Term Outlook
Housing market analysts say Canada’s new reform plan could reshape national economic policy and define the future of immigration, infrastructure, and urban development.
The next 3–5 years will determine whether the reforms successfully restore affordability or if deeper structural changes are needed.
