Soaring Canadian Housing Costs Targeted With Foreign-Owners Tax

Justin Trudeau’s government is taking steps to address Canada’s surging housing costs by promising to increase supply and target foreign owners.

The government pledged in its budget released Monday to spend about C$3.8 billion ($3 billion) to help build and repair thousands of housing units. Additionally, the government will introduce a tax on vacant property owned by non-residents beginning Jan. 1.

The measures come after weeks of calls from economists and industry professionals for the government to cool down the housing market, where low interest rates and buyers’ desire for more space are fueling accelerating price gains. In the Toronto ...