I'm not saying the ban on foreign ownership will fix the housing problems, nor am I really disagreeing that the primary issue is just a lack of housing, and of course banning foreign ownership is an easy political target because foreigners don't vote.
But just because foreign ownership is only 4% doesn't mean it can't have a sizable impact on home prices. Prices are always set at the margins, and since foreign ownership, especially in Vancouver, is really treated as a "safe place for cash" from foreign buyers, it can cause prices that are out of whack with the intended purpose of a home as being place to live.
Also, when your primary use of a house is simply a store of value to park your cash, you're likely going to want to put it into areas that are already supply constrained, because that means the risk of prices falling is lower.
But just because foreign ownership is only 4% doesn't mean it can't have a sizable impact on home prices. Prices are always set at the margins, and since foreign ownership, especially in Vancouver, is really treated as a "safe place for cash" from foreign buyers, it can cause prices that are out of whack with the intended purpose of a home as being place to live.
Also, when your primary use of a house is simply a store of value to park your cash, you're likely going to want to put it into areas that are already supply constrained, because that means the risk of prices falling is lower.