How to get single family homes out of the hands of investors | Toronto Star

By Matthew Mendelsohn , Mike Moffat and Jon Shell | This post was published in the Toronto Star

Canada needs more rental housing. But it also needs to get existing homes out of the hands of investors and back into the hands of families. The federal government can achieve both simultaneously by fulfilling one of its key campaign promises — with a twist.

Many Canadians are angry about the state of Canada’s housing market, with a recent Abacus poll finding that 56 per cent of Canadians say housing should be a top-3 priority for the federal government. Yet only 28 per cent believe the federal government is on track to meet their housing goals. Many potential homebuyers feel they cannot compete with investors, who have been increasing their share of the resale market.

The federal government is taking some steps to address Canada’s housing crisis. There are programs designed to build new supply, preserve existing affordable supply and reduce demand. But one potentially powerful approach is missing from this suite of programs: incentivizing investors to move their capital to more productive uses…

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