Business Insider announced on Instagram that Canada will ban foreigners from purchasing homes.

This was a revision from an earlier report which stated the country would ban only Nigerians from buying residential properties. The publication explained that this was “an editing error.”

The campaign website of Canadian Prime Minister Justin Trudeau addressed the law, and the general housing situation in Canada.

“The desirability of Canadian homes is attracting profiteers, wealthy corporations, and foreign investors,” the statement said. “This is leading to a real problem of underused and vacant housing, rampant speculation, and skyrocketing prices. Homes are for people, not investors.”

What's The Reason For The Ban?

Business Insider explains that “the law will help curb rising home prices and speculation in the country’s housing market.”

Moreover “it prohibits  foreign investors from purchasing homes in the country for two years, starting January 1, 2023.”

And what will become of those who break the law?

CTV News reports, “non-Canadians who violate the ban can be fined up to $10,000 and may be required to sell the property they purchased. Those who knowingly assist a non-Canadian with their purchase can also be fined.

Increase In Cost Of Homes Is A Problem All Over

Canada isn’t the only Westernized nation to report a spike in housing costs. The U.S. and the UK are experiencing the same crisis.

New York is notorious for it. High rise apartment buildings, out of the range of most people, are snatched up by the super wealthy, who barely live there themselves.

Business Insider explains, “the decision to enact this policy follows an increase in Canadian home prices since the start of the COVID-19 pandemic, with some politicians blaming foreign buyers for snapping up homes as investments and contributing to underused and vacant housing, speculation, and skyrocketing prices.”

How Much Are Homes In Canada?

“The steep rise in home prices seen in 2020 and 2021 has already been reversed,” reports Business Insider. “Average home prices in Canada peaking at just above CAD 800,000 in February before declining by about 13% since then.”

Toronto Alone Is Quite Expensive

Toronto is a fantastic city, but the cost of living? Not so much. And people who live there have been very vocal about that on social media.

Capricorn Nation moaned on Twitter,  “Toronto is more unaffordable than NY and LA. We also have one of the weakest dollars in the Western world.”

Carrie Wynne wrote, “the problem with Toronto, is it’s so darn expensive.”

A third user said, “in Toronto, you can’t even break up and leave the home you share. Y’all stuck in the same spot for the next 6 months to a year cause rent is so high here LOL.”

“Good evening, Toronto,” said a fourth. “I have now seen a studio for rent at $2200 a month. We are truly in hell.”

“I blame Drake,” joked a fifth user.

Apparently, the cost of food in city is also hard on the wallet.

Donch complained about the cost of a meal from Nando’s, a fast-food chain found in Toronto among other cities.

“I have returned to remind the internet that Toronto Nando’s charged me (the equivalent of) 45 British pounds, for the same meal that costs £22 in the United Kingdom.”

The Ban Has Drawn The Ire of Critics

Not everybody is pleased.

The Canadian Real Estate Association is worried it might tarnish the country’s welcoming reputation.

They issued the following statement: “Canada has built a reputation as a multicultural nation that welcomes people from around the world. As currently proposed, the prohibition on the purchase of residential property by non-Canadians can impact our reputation as a welcoming nation. The potential benefits of the ban are likely to be modest.”