Last month, Canada announced an immediate two-year cap on international student permits. (document)

Canada announced on Sunday it would extend a ban on foreigners owning Canadian homes by two years, saying the move was aimed at addressing concerns that Canadians were priced out of housing markets in cities and towns across the country.

Canada is facing a housing affordability crisis that is blamed on rising immigration and international students fueling demand for housing, while rising costs slow construction.

Canada’s Deputy Prime Minister said: “As part of using every tool possible to make housing more affordable for Canadians, the ban on foreign ownership of Canadian homes, currently set to expire on January 1, 2025, will be extended until January 2027. January 1,” Minister Chrystia Freeland said in a statement.

The Canadian government said foreign ownership has also fueled concerns that Canadians are being priced out of urban real estate markets across the country.

Last month, Canada announced an immediate two-year cap on international student permits and said it would also stop issuing work permits to some students after graduation to curb record numbers of new immigrants that are exacerbating a housing crisis.

Rapid population growth driven by immigration has put pressure on services such as health care and education and pushed up housing costs. The issues have hurt Liberal Prime Minister Justin Trudeau’s approval ratings, and polls suggest he would lose the election if it were held now.

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