Internal government research examined public opinion on banning corporate ownership of single-family homes, a measure proposed by then-Finance Minister Chrystia Freeland, according to newly disclosed records.
Blacklock's Reporter says a Privy Council report indicated Canadians partially blamed speculators for rising housing costs.
A series of focus groups commissioned by the government in 2024 tested reactions to potential housing policy changes, including restricting large corporate investors from buying single-family homes.
“Participants were provided with information related to a range of additional measures proposed by the federal government to make it easier for Canadians to rent or own their own homes,” stated the report Continuous Qualitative Data Collection Of Canadians’ Views.
Freeland’s April 16 budget proposed limiting corporate investment in residential properties, arguing that homes should be for people, not just investment assets.
“When purchasing a home, Canadians might be expected to be bidding against other potential buyers, not a multi-billion dollar hedge fund,” the budget document Fairness For Every Generation stated.
The government pledged to hold consultations before implementing any restrictions.
The report did not specify what constitutes a “very large corporate investor.”
However, real estate investment trusts currently benefit from a tax policy dating back to 1993, which grants them $54 million in annual tax advantages. Official estimates indicate these trusts control about 20% of purpose-built rental apartments in Canada’s private sector.
Canadians surveyed expressed concerns over the impact of speculation on housing affordability.
“A number were of the opinion that investor speculation in residential real estate had been a major contributing factor to the decreasing supply of affordable housing in their communities,” the report stated.
Some specifically cited foreign investors as a problem.
Participants widely agreed housing had become increasingly unaffordable, affecting both renters and prospective buyers. Many perceived a limited supply of homes, which they believed had further driven up costs.
The research, conducted by Toronto-based firm The Strategic Counsel under a $1.6 million contract, was disclosed yesterday. The findings were dated September 16.
In 2021, the federal cabinet proposed reviewing the tax treatment of real estate investment trusts, though no reforms have been announced to date.