Developers are admitting just how crucial foreign money is to them

Developers in Maple Ridge and Pitt Meadows are pushing senior levels of government to turn on the tap of foreign money, a stunning admission after a decade of denials that foreign investment was a consequential part of the Metro Vancouver real estate market.

And it all comes amid a new poll that says Canadians want strict limits on foreign investment in real estate – something the B.C. and federal governments say will continue.

The Big Context: Foreign investment in real estate has long been a controversial topic in B.C. politics. A decade ago, people who said the real estate industry was highly dependent on foreign money were not-so-subtly accused of racism by some developers and politicians.

Urban planner Andy Yan, who heads up Simon Fraser University’s City Program, was accused of this after releasing data on the subject. Today, he has more data on the topic.

Ownership: Yan says that in Surrey, 10.4 per cent of all newly built condos in the city are owned by non-residents. The number is 14.8 per cent in Vancouver, 12.6 per cent in Burnaby and 15.1 per cent in Richmond, Yan said.

Market Changing: The condo market has seen a severe downturn in 2025, especially when it comes to pre-sales for new condo construction. Zonda Urban, a pre-sale tracking firm, says the region is on track for a 20 per cent decline in high-rise concrete pre-sales from 2024, and 53 per cent from 2023. Pre-sales are vital for developers to fund the completion of condo project, and slow sales have led to layoffs at some development companies and the cancellation of some projects or a switch to rentals for others.

Developers Want Foreign Investment: In response to this crisis, a group of developers have written to the federal government, arguing that foreign investors are a crucial part of the pre-sale condo market. The developers signing the letter include Polygon, Amacon, Westbank, Strand, Intracorp, Bonnis, Beedie, Mosaic, Pooni Group, and Cressey. 

“Canada’s ban on foreign ownership was designed to help curtail the nation’s housing affordability crisis, but it has also negatively impacted overall investment into the new home industry,” says the letter.

The letter notes a drop in housing starts of nearly 50 per cent.

Since that letter was sent, the federal and B.C. governments have both rejected the request.

That stance is something Canadians apparently support, according to a new poll by Research Co.

Just over three-in-four Canadians think the federal government made the right call in banning foreigners from purchasing residential properties in Canada, the poll found. In the online survey of a representative national sample, 76% of Canadians support the federal government’s decision, while 13% oppose it and 11% are undecided.

The ban, which will be in effect until January 1, 2027, contemplates exclusions for international students and temporary residents.

Also in agreement is Yan, who was one of 27 urban planners, architects, scholars, developers, and urbanists who want governments to find alternatives to boost affordability.

“Canada’s housing crisis demands a reset in how we use public policy to achieve affordability,” reads the letter. “The current market correction presents an opportunity — not a threat. Governments should not bail out speculative development models, but instead use this moment to invest in non-market housing, preserve existing affordability, and ensure that public subsidies serve long-term public outcomes.”

The group says the focus should not just be simply about increasing supply, it should focus on adding more affordable housing.

“Canada’s housing crisis is, above all, a crisis of affordability,” said the letter. “Supply has increased significantly in cities like Vancouver — where housing starts have outpaced population growth for decades — yet prices remain disconnected from incomes. Vancouver provides one of the most comprehensive real-world tests of this theory. Between 1960 and 2020, it increased its housing stock by over 200 per cent while population grew by only 78 per cent — more than any other North American central city. Yet its housing affordability declined dramatically, and it now has the highest home price-to-income ratio on the continent.”

The letter makes a series of recommendations for government:

• Prioritize federal financing and grants for co-ops, land trusts, and nonprofits.
• Since CMHC-backed programs like MLI Select are not producing the right kind of supply that is affordable and livable, while it puts CMHC at undue risk, reconsider if more of CMHC resources should go towards co-op housing with permanent affordable housing instead.
• Require minimum livability standards, especially for family-friendly housing.
• Ensure affordability is defined relative to local incomes, not market medians, and is long term permanently secured through strong covenants and housing agreements.
• Make tenant protection and zero net-loss of affordable units, mostly through protecting existing rental buildings from demolition, a condition for accessing federal infrastructure or housing funds.
• Support rehabilitation and retrofits of existing rental buildings as climate-resilient, affordability-preserving alternatives to demolition.
• Recognize the human toll of displacement—the best tenant protections are to protect existing rental buildings.