Written by: Erin Best of REW More US residents are considering moving north, but what does that mean for BC real estate? Effective January 2023, the federal government introduced the Prohibition on the Purchase of Residential Property by Non-Canadians Act. The Act was meant to ban foreign investors from buying non-recreational residential property in Canada, in an attempt to keep Canadian housing affordable for Canadians until January 2025. The Act was later extended for an additional two years to 2027.

What does "non-Canadian" really mean under Canada's foreign buyer ban?

Let’s break it down: when the Prohibition on the Purchase of Residential Property by Non-Canadians Act was passed on June 23rd, 2022, as part of Bill C-19, it put restrictions on who can buy residential real estate in Canada. But what exactly does "non-Canadian" mean under this law? In real estate terms, a non-Canadian is anyone who isn’t a Canadian citizen, a permanent resident or registered under the Indian Act. That means:

• Individuals: If you’re a citizen of another country and don’t have permanent resident status in Canada, you’re considered a non-Canadian.
• Businesses: If a company is incorporated outside of Canada and doesn’t have a permanent establishment here, it’s also considered non-Canadian.

While this law was designed to curb foreign investment in Canadian housing, exemptions exist, including for American buyers, which is why we’re seeing an influx of US buyers purchasing in areas where the ban doesn’t apply. Exemptions outlined in the Act do, in specific circumstances, allow non-Canadians purchase residential property, such as:

• Temporary residents studying in Canada: Must be enrolled in a designated institution, have filed taxes for five years, been in Canada for 244 days each year for five years, and purchase a property under $500,000.
• Temporary residents working in Canada: Must have a valid work permit with at least 183 days remaining, and not have purchased property while the ban was in effect.
• Refugees and protected persons: Can buy property. Accredited foreign diplomats: With the appropriate diplomatic status.
• Spouses/common-law partners of Canadians: Can buy property together. Indigenous rights: The ban does not apply if it conflicts with Indigenous rights under Section 35 of the Constitution.
• Properties outside major urban areas: Properties located outside Census Metropolitan Areas (CMA) or Census Agglomerations (CA) are exempt.

The Act also has some additional clarifications:

• The Act defines residential property as buildings with up to three dwelling units, including semi-detached houses and condominium units.
• The prohibition does not apply to properties located outside CMAs and CAs. As of March 27th, 2023, the prohibition does not apply to vacant land.

Because non-Canadian’s can buy properties outside of major urban areas (or CMA/CA’s) BC real estate agents report helping multiple American buyers purchase property in the first quarter of 2025. The political climate and rising living costs from tariffs are prompting many to leave the US. They’re attracted to Canada's seemingly stable government, favourable exchange rate, lifestyle opportunities and more predictable economy. Sotheby’s International Canada real estate agent, Rachel Manley, says that she and her partner Janai York have, “had four sets of US buyers come to view property on the Sunshine Coast already this year.” And that, “many agents have observed a rise in inquiries and transactions involving US buyers as their dollar seems to go much further here and also their political stance seems to be a factor.” Rachel goes on to explain: “The Sunshine Coast is exempt from the foreign buyers ban making it a fantastic option for those getting away from the US. We help to ensure they understand the legal, tax and financial implications of cross-border transactions.” Because the process can get complex, Rachel makes sure to walk through the process with her clients. She says, “This includes: connecting them with trusted professionals – lawyers, accountants and mortgage brokers – familiar with international purchases, providing insight into areas that match their needs, whether they are looking for a vacation home or permanent relocation and educating them on BC property regulations, including foreign buyer restrictions, financing options and residency considerations and offering zoom calls and virtual property tours to accommodate out-of-country buyers navigating the process remotely.” With increasing numbers of American buyers purchasing property in British Columbia – particularly in areas outside of Census Metropolitan Areas (CMAs) exempt from the Prohibition on the Purchase of Residential Property by Non-Canadians Act – there are several key real estate implications for local markets, affordability, development and policy considerations.

Rising demand in secondary markets.

This shift could potentially lead to increased competition for properties in regions like Whistler, Tofino, Revelstoke, the Osoyoos and key areas on Vancouver Island, because many of these areas fall outside the CMA definition. Basic supply and demand principles means more demand on properties leads to higher property values and increased competition in smaller, previously affordable markets. Real estate agents and developers will need to shift focus to these areas to meet demand, otherwise, we may see an inventory shortage for local buyers – something we are all too well familiar with in metro Vancouver.

Pressure on infrastructure and local development.

As smaller markets see increased population growth and investment, there’s likely to be more strain on local infrastructure, services and zoning regulations. These areas may not have the same development capacity as larger CMAs to handle population surges. Local governments may need to adjust zoning, expand utilities and enhance transportation networks, if we assume a large wave of US immigrants ends up moving to Canada.

Potential policy adjustments and expansion of the ban.

With American buyers finding ways around the foreign buyers ban, policymakers may re-evaluate the Act’s effectiveness. The government could consider expanding the ban’s geographical coverage or introducing new taxes on non-resident purchases. Possible policy changes or tax measures targeting non-Canadian buyers outside CMAs risk increasing scrutiny on real estate transactions in rural areas and creating more public debate on foreign ownership and housing accessibility generally. While some may worry about Americans purchasing property in BC, frankly, it’s too soon to tell. But this trend isn't necessarily a totally bad thing. For real estate agents in non-CMA markets, it opens up new opportunities to work with motivated buyers looking for stability or lifestyle upgrades. Increased demand can bring economic benefits to smaller communities, supporting local businesses and driving real estate activity in areas that may have previously seen slower growth. BC real estate agents are well-positioned to help these buyers navigate the market, ensuring fair transactions and fostering long-term client relationships. As cross-border interest in BC real estate grows, agents who adapt to these trends will find new ways to thrive in uncertainty.