Prime Minister Justin Trudeau promised to introduce a two-year ban on foreign home buyers to tackle housing affordability in Canada if he’s re-elected.

The proposed restriction is an attempt to cool a housing market that has soared during the Covid-19 pandemic. Surging prices have become a central issue in the campaign for the Sept. 20 vote, in which Trudeau hopes to regain a majority in parliament, with all three major parties promising crackdowns.

“You shouldn’t lose a bidding war on your home to speculators. It’s time for things to change,” Trudeau said at a campaign event in Hamilton, Ontario, about 40 miles southwest of Toronto. “No more foreign wealth being parked in homes that people should be living in.”

Outrage over housing affordability is increasingly directed at foreign buyers, especially in Vancouver, whose real estate has become increasingly popular among non-resident buyers from China and Hong Kong.

While the number of houses changing hands has declined in recent months after a pandemic-driven boom in activity, prices remain near record levels. The average cost of a home was C$669,200 ($529,840) in July, according to the Canadian Real Estate Association -- up 16% from a year ago.

The Liberals are also proposing a ban on blind bidding, tax-free savings accounts for first-time buyers and more oversight of the real estate industry to fight money laundering. They’re also vowing to add or repair 1.4 million homes over the next four years.

Continue to read on: YahooFinance