The Foreign Buyer Ban was implemented in January 2023 to make housing more affordable for Canadians by prohibiting non-Canadians from purchasing residential properties with up to 3 dwelling units in urban areas. The ban was recently extended until January 1, 2027. While politically popular, its effectiveness has been questioned due to numerous loopholes and its coinciding with rising interest rates, making it difficult to isolate its impact on the housing market.

• developers have called for lifting the ban, arguing it's stalling construction by blocking foreign capital needed for pre-sales financing, with housing starts in BC dropping 50% from March 2024 to March 2025
• The ban has multiple workarounds including obtaining permanent residency, buying properties with 4+ units, purchasing in rural areas, or investing in development projects
• The ban's effect on prices has been minimal compared to interest rate increases, with industry experts like Royal LePage's COO calling it "unnecessary" with "virtually no impact on home costs or supply"

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We discuss how modular construction and prefabricated housing can address Canada's housing crisis through improved labor productivity. The hosts examine Canada's productivity challenges compared to the US, particularly in construction, and explore innovative building methods that could accelerate housing production despite an aging workforce.

• Canada needs to double its housing construction to approximately 430,000-480,000 annual starts to restore affordability, but faces barriers including labor shortages and weak productivity in residential construction⁠⁠.
• A "silver tsunami" of retirements will remove about 270,000 construction workers (one-fifth of the workforce) over the next decade, creating an urgent need for productivity improvements⁠⁠.
• Innovative methods like modular construction can reduce build times by 20-50%, while mass timber requires half the workforce of concrete builds and speeds construction by 30%

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We explore whether Canada is moving toward a "renters economy" where more people rent homes rather than own them. It examines historical housing trends, current market conditions, and international comparisons to assess if Canada is following countries like Germany where renting is normalized.

• "You'll own nothing and be happy" represents a subscription-based future economy
• Canadian homeownership rose from 40% (1940) to 60% (1970s) due to post-WWII government policies
• Millennials face the highest barriers to homeownership
• Current construction favors rental units (108,000) over condos, boosted by CMHC incentives
• Germany normalizes renting with strong tenant protections, 11-year average tenancies
• Real estate makes up 28% of Canada's GDP, possibly diverting investment from more productive sectors
• A rental economy shift could improve tenant protections and amenities while increasing property values
• Canada appears to be gradually shifting toward a rental-focused housing landscape

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