Feb 7, 2025 6:49:14 PM

Are “Part-Time Canadians” Pushing Local Buyers Out of the Housing Market?

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A segment of homeowners in major Canadian cities—particularly Vancouver and Toronto—possesses legal Canadian status (citizenship or permanent residency) but spends much of the year living abroad. Dubbed “part-time Canadians,” they can enjoy the privileges of local ownership without necessarily being full-time residents or declaring substantial domestic income. In recent debates about housing affordability, critics argue this group fuels real estate price growth by leveraging foreign earnings or global assets to purchase Canadian properties. But how large is this cohort, and do they truly push out local wage earners seeking a home?

In this article, we draw on 50+ data points from sources like Statistics Canada, Canada Mortgage and Housing Corporation (CMHC), RBC Economics, Real Estate Board of Greater Vancouver (REBGV), Toronto Regional Real Estate Board (TRREB), Transparency International Canada, and others. By examining who these “part-time Canadians” are, how they acquire property, and what policies target them, we’ll gauge whether they genuinely tip the housing scale against locals—or if they’re an overhyped factor in Canada’s ongoing affordability crisis.

Who Counts as a “Part-Time Canadian”?

The Basic Concept

Definition
Commonly, these individuals hold Canadian citizenship or permanent residency but spend significant time (often over half the year) outside of Canada. They might work overseas, manage businesses abroad, or prefer the climate and opportunities in another country.
Overlap with Other Groups
“Part-time Canadians” can also be “astronaut families” or “satellite families,” where the main breadwinner remains abroad, and only the spouse/children live in Canada. A 2022 UBC Sauder School of Business study indicated 10–15% of high-end property buyers in Metro Vancouver could fit this pattern.

Under the Radar

Not Classified as Foreign Buyers
Since many are citizens or permanent residents, they don’t pay BC’s or Ontario’s foreign buyer taxes. As a result, official “foreign buyer” data (BC Ministry of Finance) underestimates offshore capital when owners have Canadian status.
Partial Tax Obligations
If they claim non-resident status for tax purposes, their Canadian property holdings might be subject to different rules—though enforcement is tricky, and precise data is scarce.

How Part-Time Canadians Acquire and Hold Property

Offshore Funds and Local Proxies

Offshore Income
RBC’s 2023 briefing notes that many part-time Canadians finance purchases with foreign earnings, circumventing local mortgage stress tests or borrowing less from Canadian banks.
Nominee Ownership
A 2022 Transparency International Canada report highlights that some owners list properties under family members or shell corporations. Since the ultimate beneficial owner is Canadian (or has PR), it avoids foreign-buyer taxation.

Minimal Canadian Income Disclosure

Low or Zero Declared Domestic Income
Similar to “satellite families,” these owners may report negligible Canadian wages, funneling in overseas capital instead. A 2019 Statistics Canada analysis found certain upscale Vancouver and Toronto neighborhoods where 20–30% of homeowners reported under CAD $20,000 annual income.
Limited CRA Oversight
While the Canada Revenue Agency requires global income reporting for tax residents, part-time residents often claim non-resident tax status if they primarily live abroad. The CRA’s cross-border enforcement remains challenged by data-sharing gaps.

Do Part-Time Canadians Significantly Drive Up Prices?

Concentration in High-End Segments

Luxury Homes and Condos
A 2021 Knight Frank Wealth Report indicated that cities like Vancouver and Toronto rank among top “safe havens” for global wealth, with large mansions or prime downtown condos popular among part-time Canadians.
Not All in Luxury Tier
Still, some choose mid-market suburban homes, especially if children attend local schools. RBC Economics suggests areas near top secondary schools see higher incidence of such buyers.

Statistical Estimates

Lack of Precise Data
Governments track foreign nationals buying property but not necessarily “part-time Canadians.” RBC’s 2022 note posits that 5–10% of Metro Vancouver’s total housing market might be influenced by residents who spend extended periods abroad.
Influence on Benchmarks
Even a small share of overseas-funded or part-time owners can raise average prices, particularly in high-demand neighborhoods. A 2020 CMHC study concluded that foreign capital typically escalates housing cycles in prime markets.

Hollowing-Out or Overblown?

Critics’ View
Some local residents see empty mansions or lightly used condos as evidence that “part-time Canadians” lock up valuable housing stock, intensifying scarcity. Vancouver’s Empty Homes Tax (City of Vancouver) partially addresses such units but only within city boundaries.
Counterargument
While they may keep certain properties vacant or underused, many part-time Canadians also bring spending and investment, pay property taxes, and support local businesses. They might not single-handedly determine the broader market, overshadowed by local demand and supply constraints.

Market Examples: Vancouver and Toronto

Vancouver

West Side Mansions and Richmond Estates
Metro Vancouver’s prime areas—Shaughnessy, Point Grey, Richmond farmland—report repeated incidents of homes owned by Canadians residing primarily in Asia or other overseas locales. A 2021 UBC research paper found that 20% of property transfers in some wealthy neighborhoods involved owners reporting less than CAD $30,000 annual domestic income.
Condo Investments
Downtown Vancouver, Coal Harbour, and Cambie Corridor also see part-time owners who use the unit as a second home for occasional visits, paying the Vancouver Empty Homes Tax if unoccupied beyond certain thresholds.

Toronto

Midtown and North York
A 2022 TRREB consumer survey noted that neighborhoods near top schools (e.g., Earl Haig S.S. area) attract parents wanting stable real estate and educational options. Some hold property but spend months abroad.
Pre-Construction Condos
Part-time residents invest heavily in new condo presales, especially near subway lines. RBC contends such pre-sales are popular among overseas Canadians looking for a straightforward, hands-off property purchase.

Policy Measures Targeting Part-Time Residency

Foreign Buyer Taxes and Speculation Levies

Loopholes for Canadian Status
BC’s 20% foreign-buyer tax and Ontario’s 25% (in 2022) tax apply only to non-citizens/non-PR. Part-time Canadians with citizenship or PR are exempt.
Speculation & Vacancy Tax
BC’s 2% annual SVT for non-residents or “satellite families” was designed to capture households not paying full Canadian income tax. Yet RBC’s 2023 note indicates enforcement complexities—some “part-time Canadians” can claim partial tax residency or minimal local earnings.

Empty Homes Tax

Vancouver and Soon Toronto
Vancouver’s empty homes tax initially set at 1%, rising to 3% in 2021. Toronto launched a vacant home tax of 1% in 2023 (City of Toronto.)
Exemptions
If the owner shows it’s occupied by a family member or at least six months a year, the property isn’t taxed. Part-time Canadians might stay just enough to avoid the tax or have family members nominally occupying it.

Federal Prohibition on Non-Resident Buyers

2-Year Ban (2023)
Enforced nationwide, but Canadians and permanent residents living abroad aren’t affected. RBC’s 2023 analysis says the ban has limited relevance for “part-time Canadians” who hold legal Canadian status.

Social and Community Effects

Housing Affordability

Driving Up Benchmarks
A 2019 Statistics Canada data product correlated higher property values in select neighborhoods with a higher share of “likely non-resident owners” or part-time Canadians. Local wage earners struggle to compete.
Outmigration
Families priced out move to suburbs or smaller cities. A 2022 BC Stats release shows net migration from Metro Vancouver to the Fraser Valley and Vancouver Island soared 30% from 2017–2021.

Local Services and School Enrolment

Seasonal Occupancy
If owners only visit for a few months, neighborhoods may experience reduced year-round foot traffic, affecting local shops. A 2021 CBC News feature highlighted a drop in some Vancouver West Side elementary school enrolments partly linked to transient or part-time families.
Economic Benefits
Some note that property taxes from high-value homes still fund city services. Part-time Canadians might also boost luxury retail, restaurants, and private schools.

Cultural Frictions

Resentment Over “Empty Mansions”
Public perception that “ghost homes” persist while working locals can’t find affordable housing. RBC’s 2022 poll found 61% of British Columbians support harsher taxes on underused properties.
Xenophobic Undercurrents
Critics warn not to conflate part-time Canadians—who may have legitimate ties to Canada—with broad anti-immigrant sentiments. Advocacy groups stress better data and policy, not scapegoating entire communities.

Are Part-Time Canadians Truly Pushing Out Locals?

Mixed Evidence

Concentrated in High-Value Markets
Part-time Canadians likely impact the top 10–20% price bracket most, such as prime Vancouver and Toronto neighborhoods, though RBC’s 2023 note suggests they could also appear in mid-tier suburban markets.
Local Supply Constraints
Housing experts (e.g., CMHC) repeatedly cite zoning hurdles and inadequate new builds as fundamental reasons for high prices. Thus, while part-time ownership contributes, it may not be the sole cause.

Key Takeaway

Compounding Effect
Even if their numbers aren’t vast, part-time Canadians can amplify price growth by adding capital to an already undersupplied market. They’re one factor among many—low interest rates, limited land, immigration, speculation—shaping unaffordability.

Potential Policy Refinements

Strengthening Transparency

Beneficial Ownership Enforcement
The Land Owner Transparency Registry (LOTR) in BC and similar efforts in Ontario aim to uncover hidden ownership. Stricter audits, bigger fines for misreporting, and inter-agency data sharing could deter passive “part-time” usage.
CRA Global Income Verification
More robust cross-border tax cooperation ensures Canadian residents with offshore income declare it. RBC’s 2022 briefing underscores the challenge without international treaties.

Tax Adjustments

Vacant or Underused Home Taxes
Increasing tax rates for rarely occupied properties might discourage pure investment holding. Some advocate raising Vancouver’s Empty Homes Tax or broadening it province-wide.
Progressive Property Tax
Linking property tax rates to length of occupancy or global incomes could ensure heavier levies on owners not contributing local income taxes, though critics worry about implementation complexity.

More Housing Supply and Zoning Overhauls

Loosening Single-Family Zoning
Encouraging multi-family developments citywide helps accommodate both local and foreign-driven demand, preventing a zero-sum dynamic. RBC’s 2023 blueprint suggests building over 30,000 units annually in Metro Vancouver alone.
Provincial-Municipal Partnerships
Fast-tracked approvals, targeted densification near transit, and incentives for rental projects can moderate price pressures.

Conclusion

The phenomenon of “part-time Canadians”—citizens or permanent residents who predominantly live abroad—demonstrates the nuances of Canada’s global real estate appeal. These homeowners may hold Vancouver or Toronto properties as safe-haven investments, second homes, or for children’s education, typically funding purchases through offshore income. Although they’re exempt from foreign-buyer taxes, their presence in the market can intensify bidding wars in certain segments and reinforce the sense that local wage earners are priced out.

Yet, the blame cannot rest solely on part-time Canadians. Chronic underbuilding, complex zoning rules, historically low interest rates (until recent hikes), and broader immigration flows all converge to shape BC’s and Ontario’s unaffordability. Government interventions like vacant-home taxes and beneficial ownership registries partially curb absentee ownership. But until Canada more robustly polices global income reporting, imposes meaningful deterrents to underused properties, and dramatically expands housing supply, part-time Canadians are likely to remain a visible factor in the property landscape.

As public debate intensifies, it’s crucial to distinguish legitimate, law-abiding families with transnational lifestyles from abusive or speculative practices. Clear data, balanced policies, and consistent enforcement can help ensure that part-time Canadians contribute positively without displacing local home-seekers. With a more transparent and adequately supplied market, BC and Ontario might better accommodate both local buyers and the global citizens drawn to Canada’s real estate offerings.