Real estate investors made up approximately one-quarter of homebuyers in British Columbia between 2018 and 2020, according to a newly released analysis by Statistics Canada. This data highlights the significant role investors play in B.C.’s real estate market, particularly in major metropolitan areas like Vancouver, Kelowna, and Victoria.
Key Insights from the Statistics Canada Report
- Investor Prevalence: Investors accounted for 25% of all home purchases across the province.
- Condos Dominate: A remarkable one-third of all condo units sold during the period were bought by investors.
- Top Metro Areas: Kelowna had the highest rate of investor activity, followed by Vancouver and Victoria.
Tom Davidoff, associate professor at UBC’s Sauder School of Business, noted that the data reflects long-standing trends in B.C., particularly in Vancouver, where favorable conditions like low interest rates and property taxes prior to 2020 incentivized real estate investment.
Breaking Down Investor Types
Statistics Canada categorized investors into four distinct groups:
- In-Province Investors: Local residents owning at least two properties.
- Accounted for 16.6% of all purchases, the largest share among investors.
- Non-Resident Investors: Buyers living outside of Canada.
- Comprised 3.2% of sales.
- Business Investors: For-profit companies and entities.
- Represented 2.8% of transactions.
- Out-of-Province Investors: Buyers from other parts of Canada.
- Made up 2.2% of purchases.
Immigrant Investment in B.C. Real Estate
Immigrant investors are overrepresented in the in-province category, particularly in major cities:
- In Vancouver, 67% of B.C. resident investors were immigrants, while immigrants comprised only 42% of the population.
- Similar trends were observed in Victoria and Kelowna.
Immigrant investor-buyers reported a median income of $60,000, comparable to non-investor buyers but significantly lower than Canadian-born investor-buyers, who had a median income of $90,000.
Post-Pandemic Changes in Investment Behavior
Several factors have influenced investor activity since 2020:
- Policy Changes: Short-term rental restrictions and property tax increases have likely cooled investment demand.
- Rising Interest Rates: Increased borrowing costs have added a financial hurdle for investors.
While policies aim to balance housing affordability, Davidoff argued that investors are not the primary drivers of housing price increases. Instead, they are more active in markets with strong growth potential.
A Focus on Affordable Housing
From a public policy perspective, Davidoff emphasized the importance of ensuring affordable rents over ownership:
“It’s necessary that people can afford to rent a home,” he said. “Getting housing built—whether it’s for owners or renters—is the most important step.”
Purpose-built rentals, investor-owned condos for rent, and owner-occupied condos all contribute positively to the housing supply, he argued.
Conclusion
Statistics Canada’s analysis underscores the significant role investors play in shaping B.C.’s housing market. While policies aimed at curbing speculative investment may ease pressure on housing prices, the ultimate solution lies in increasing the housing supply to meet growing demand.
References:
Canada Housing Market 
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