Housing Minister Ahmed Hussen believes Canada's investment in the housing sector will help the country attract and retain immigrants.
After hitting a record level of immigration last year and starting to accept an unlimited number of Ukrainians, Canada is worried about the lack of affordable housing for newcomers.
With inflation hitting 6.7 percent, the government of Canada addressed the shortage of affordable housing in its latest budget through strategies designed to double the amount of construction over the coming decade.
Foreign nationals studying at Canadian colleges and universities or who have already obtained permanent residency are not among the foreign investors targeted by the two-year ban on buying Canadian residential properties.
Finance Minister, Chrystia Freeland stated that,
"We will make the market fairer for Canadians and will prevent foreign investors from parking their money in Canada by buying up homes. We will also make sure that houses are being used as homes for Canadian families rather than as a speculative financial asset class."