In the recent past, Canadian residential real estate has been very tough on Canadian citizens and permanent residents. The real estate market has seen escalated home prices particularly in the GTA area and Vancouver. Home prices soared due to foreign investments as foreign buyers purchased residential properties for investment purposes and flipped them for profit. These inflated prices led to an affordability crisis making it very difficult for Canadians to purchase houses. A race began where Canadians residents were competing with foreign buyers. Affordable housing became a challenge especially for first-time homebuyers who struggle to purchase houses.
A change was necessary. It became necessary to limit the foreign ownership of real estate and make residential real estate market more accessible and affordable to Canadians.