Nova Scotia has most real estate investors from out of province

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Released May 23, 2023 • Last updated 7 hours ago • 2 minutes reading time

Statistics Canada's second report on residential real estate investment in Canada shows that the proportion of out-of-province investors was lower in Ontario (0.5 percent) and Manitoba (1.4 percent) than in British Columbia (2.7 percent) and New Brunswick (3.0 percent); and Nova Scotia (3.8 percent). Statistics Canada’s second report on residential real estate investment in Canada shows that the proportion of out-of-province investors was lower in Ontario (0.5 percent) and Manitoba (1.4 percent) than in British Columbia (2.7 percent) and New Brunswick (3.0 percent); and Nova Scotia (3.8 percent). Photo by National Post

British Columbia, Nova Scotia and New Brunswick in Canada top the list for the highest percentage of foreign and nonresident investors in residential real estate, according to new data from Statistics Canada.

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The figures, which are part of Statistics Canada’s second report on residential real estate investment, show that the proportion of out-of-province investors in British Columbia (2.7 percent), New Brunswick (3.0 percent) and Nova Scotia (3.8 percent) percent) was higher) than in Ontario (0.5 percent) and Manitoba (1.4 percent).

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The percentage of intra-province investors owning three or more properties was highest in Ontario at 2.9 percent and lowest in New Brunswick at 1.6 percent.

Previous reports from Statistics Canada showed that at the beginning of 2020, at least 20 percent of residential property was owned by investors in each of the five provinces surveyed. These include Nova Scotia, New Brunswick, Ontario, Manitoba and British Columbia.

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An investor is defined as someone who owns at least one non-primary residential property and excludes Canadian non-profit organizations. The category includes corporations and government entities, as well as individuals residing outside the province where they own property. This includes non-resident owners, multi-owners and people who own a property with several residential units but who do not live in this property.

Statistics Canada’s most recent report found that established immigrants – categorized as those who arrived in Canada before 2010 – accounted for a higher proportion of investors than their proportion of the population.

In a notable finding, the report states that the appraised value of real estate held by immigrant investors tends to be higher than that of Canadian-born investors in all five provinces surveyed, even though their incomes tend to be lower. This was explained, at least in part, by the fact that immigrant investors are more likely to have a primary residence in a larger census metro area, where appraisal scores tend to be higher than in other parts of a province.

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In British Columbia, for example, the average appraised value of immigrant investors’ total real estate holdings was $2.2 million, compared to just over $1.6 million for Canadian-born investors. Meanwhile, Canadian-born investors in BC had an average individual income of $105,000, compared to an average of $80,000 for immigrant investors.

In Ontario, real estate holdings averaged $1.29 million for immigrant investors and $890,000 for Canadian-born investors. Meanwhile, the median single income was $100,000 for Canadian-born investors and $80,000 for immigrants.

Perhaps less surprisingly, the Statistics Canada report states that residents aged 55 and older account for a higher proportion of investors than their proportion of the provincial population.

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Statistics Canada began looking into the details of residential real estate investment in 2020 over concerns that while this activity provided needed rental stock, it could also help exacerbate house price volatility and limit access to the real estate market for first-time home buyers .

  1. Homes in Toronto.

    High regulatory costs make housing in Canada unaffordable

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    The average home price in Canada has increased by more than $100,000

  3. Condominium buildings in the Liberty Village neighborhood of Toronto.

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The latest report examined investor demographics to distinguish between different types of investors and to clarify their role in real estate markets.

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