Real estate professionals are calling on the federal government to address an unintended consequence of Canada's foreign-buyer ban that is disproportionately affecting ski resorts in British Columbia's Interior. The ban, implemented to curb housing speculation, inadvertently ensnares communities like Sun Peaks, SilverStar, and Apex Mountain due to their proximity to designated census metropolitan areas, while other popular resorts like Whistler and Big White remain exempt.
Key Takeaways
- Some Interior B.C. ski resorts are subject to Canada's foreign-buyer ban due to their census boundary classifications.
- Resorts like Whistler and Big White are exempt because they fall outside major census metropolitan areas.
- The ban is reducing the pool of potential buyers for properties in affected resorts, impacting market activity.
- Real estate associations are urging the government to create exemptions for these ski communities.
The Census Boundary Conundrum
The federal foreign-buyer ban, in effect since 2023, prohibits non-Canadians from purchasing residential properties. However, the legislation includes exemptions for homes located outside of defined census areas. This distinction has created an uneven playing field for ski resorts.
While Whistler is outside Vancouver's census metropolitan area (CMA) and Big White is outside Kelowna's CMA, resorts such as Sun Peaks are considered part of the Kamloops CMA, and SilverStar is grouped with Vernon. This classification means these Interior resorts are subject to the ban, unlike their coastal counterparts.
Impact on Resort Markets
Seth Scott, director of government relations for the Association of Interior Realtors, highlighted the disparity, stating that Sun Peaks is treated the same as Kamloops and SilverStar the same as Vernon for the ban's purposes. This exclusion of foreign buyers, who often purchased properties for seasonal retreats, has diminished the market. "A good portion of the property purchased up there were foreign buyers," Scott noted, adding that their absence can lead to a slide in property values and reduced market interest.
A Call for Exemptions
Real estate industry groups, including the Association of Interior Realtors and the BC Real Estate Association, are advocating for exemptions for Sun Peaks, SilverStar, Apex Mountain, and other affected Interior resorts. Trevor Hargreaves, vice-president of government relations for the BC Real Estate Association, described the situation as "a matter of fairness and consistency," arguing that "including some ski resort areas and excluding others simply by chance really isn’t good policy making."
Industry representatives believe that granting exemptions would be a straightforward solution that would significantly benefit these resort markets. They anticipate that such a move would reintroduce competition, boost economic activity, and restore vibrancy to these communities. The foreign-buyer ban is currently slated to remain in place until at least next year.
