Looking through the latest Housing Market Insight report from CMHC, I found some interesting data on foreign buyers.
In 2014, foreign residents owned 2.3% of Vancouver’s 203,824 condominium units — 4,688. In 2015, they owned 3.5% of 210,696 units — 7,374. For the year, total supply increased by 6,872, while foreign owners increased their total by 2,686.
This means foreign residents bought 39% of added condominium supply! It also looks like a similar situation happening in Toronto.
This explains why, even though housing starts have been strong for several years, current housing market inventory is very low.
It’s foreign demand, stupid.