Investors Account for 25% of B.C. Homebuyers, New Data Reveals
A new Statistics Canada analysis has revealed that real estate investors made up a quarter of homebuyers in British Columbia between 2018 and 2020, with the proportion rising to one-third for condo purchases.
Key Findings:
- The highest investor activity in census metropolitan areas was recorded in Kelowna, Vancouver, and Victoria.
- Among different types of investors:
- In-province investors led the category, responsible for 16.6% of sales.
- Non-resident investors accounted for 3.2%.
- Business investors represented 2.8%, and out-of-province investors made up 2.2%.
- Immigrant investors were notably prominent in cities like Vancouver, making up 67% of in-province investor-buyers despite representing less than 42% of the population.
Economic Context and Trends
Tom Davidoff, an associate professor at UBC’s Sauder School of Business, highlighted that Vancouver’s historically low interest and property tax rates have long made real estate a favored investment. However, recent policy changes, such as interest rate hikes and stricter property taxes, may have tempered investor enthusiasm.
Despite concerns about the role of investors in driving housing prices, Davidoff argues their influence might be overstated. He emphasized that investor activity often follows rising markets, rather than causing price surges.
Policy Implications
Davidoff stressed the importance of focusing on affordable rental housing as a priority over curbing investor activity:
“It’s necessary that people can afford to rent a home. Building housing—whether owner-occupied, rented by investors, or purpose-built rentals—is crucial.”
The findings reflect evolving dynamics in B.C.’s housing market, with ongoing discussions about balancing investment, affordability, and housing supply.
