New housing data showing that non-residents account for only a small fraction of the housing stock and claims that these foreigners aren’t to blame for high housing prices have been meet with ridicule and scorn among locals. We think the new data provide additional insight into housing prices. While average home sale prices in the smaller Vancouver market have, to a certain extent, been influenced by sales to foreigners, the same cannot be said for the larger Toronto market. Overall, we still firmly believe that excessive credit growth has been the primary driver of high housing prices.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to gain:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services