Statistics Canada Reports that 25% of Homebuyers in British Columbia are Investors

Statistics Canada has released new data showing that investors account for approximately a quarter of real estate purchases in British Columbia.

The data indicates that around a quarter of homebuyers in B.C. and 3 out of 10 buyers in Nova Scotia are investors. In New Brunswick, this number drops to 2 out of 10.

Over the past three years, an average of 24.8% of residential properties in British Columbia were purchased by investors. In Nova Scotia, the percentage ranged from 29.2% in 2018 to 26.7% in 2020. In New Brunswick, the average rate of investor purchases was 20.3% over the three-year period.

Investor status was determined by property ownership and the owner’s location of residence, with investors classified into four categories: business investors, non-resident investors, out-of-province investors, and in-province investors.

According to StatCan data, investors tended to prefer purchasing condo units over single-detached houses.

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“In Halifax, Vancouver and Victoria, about one-third of all condominium apartment buyers were investors, with Kelowna showing an even higher share,” as stated by the report authors.

Rural vs Urban Investors

Investors in Nova Scotia tended to purchase more property in rural areas (37.2%), while those in B.C. focused on urban areas. The percentage of investors buying rural properties in British Columbia averaged 34%, compared to 27.2% in New Brunswick.

Before the COVID-19 pandemic, Kelowna, Vancouver, and Victoria were the B.C. cities with the highest number of investor purchases.

On the East Coast, investors buying in cities paid lower prices for houses compared to non-investor buyers. However, in B.C., investors paid more than non-investors.

Immigrants and Investment Properties

StatCan reported that the proportion of immigrants buying investment properties was higher relative to their share of the population.

“For instance, in Vancouver, immigrants made up about two-thirds (67%) of in-province investor buyers, despite representing around two-fifths of the population at the time,” the authors explained.

Similar patterns were observed in the 2018 and 2020 statistics, according to the report.

The authors suggested that immigrants are more inclined to invest in real estate compared to other assets, possibly contributing to their overrepresentation in investor purchases.

“A tendency for immigrants to allocate more savings towards real estate assets could also clarify the income discrepancies between immigrant and Canadian-born investor buyers,” as mentioned in the report.