Premier Kathleen Wynne is set to announce a new 15 per cent “non-resident speculation” tax on foreign investors as a potential solution to southern Ontario’s red-hot housing market. Wynne, Finance Minister Charles Sousa, and Housing Minister Chris Ballard will make a formal announcement on the provincial government’s plan to address housing affordability Thursday in Liberty Village.
Housing prices in the Greater Toronto Area are up 33 per cent year over year, with the average re-sale value on Toronto homes reaching $899,452 in March of 2017, according to data from the Toronto Real Estate Board. The average Canadian house is worth $548,517.
Wynne’s “non-resident speculation” tax is hardly a cure-all, as it’s estimated that foreign investors make up five per cent of the current Toronto market. It’s certainly encouraging to see the province step in on the housing crisis, though.
Additional measures to be introduced by the provincial government, according to a CBC report, include: