Investors own a big chunk of Canada's housing market. Should we be worried about that?

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20% of homes in Canada, and a whopping 40% of condos are owned by investors, Statistics Canada tell us. Should we be worried about that?

for the first time on Feb. 3, showed that at least 20 per cent of residential real estate was owned by investors at the beginning of 2020 in each of the five provinces tracked.Sign up to receive the daily top stories from the Financial Post, a division of Postmedia Network Inc.By clicking on the sign up button you consent to receive the above newsletter from Postmedia Network Inc. You may unsubscribe any time by clicking on the unsubscribe link at the bottom of our emails or any newsletter.

Fontaine and fellow senior analyst Joshua Gordon, who co-wrote the report, said investors who rent out their properties help boost “really low” rental housing supply but that, on the other hand, they removes units for potential buyers who intend to use them as their primary place of residence., an online catalogue of pre-construction units across the Greater Toronto Area, said having investors is especially important in pre-construction.

“If weren’t buying the pre-construction condos, then developers would not hit the sales thresholds required by the bank in order for them to actually secure construction financing and so that new housing supply wouldn’t get built at all,” Scrinko said.Article content

 

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