How does investment leaving Canada affect homeowners?

When capital leaves a region, the impact is often discussed in economic terms: investment levels, development pipelines, or competitiveness. For homeowners, however, the consequences are more long-term and often not discussed: slower housing supply, persistent cost pressures, and increased uncertainty around employment and household finances. 

Recent commentary from Ross McCredie, Chairman and CEO of Sutton Group, sheds light on this topic and matters beyond the industry. 

“I think we’re in for a difficult year. What we’re really worried about is the lack of investment coming into Western Canada, specifically B.C., and the outflow of money from wealthy corporations and individuals. Capital is leaving the province right now." 

“B.C.-based developers are pivoting to projects in U.S. markets like Colorado, Texas, and California, while government projects are eclipsing the private sector. Investment is being squeezed by policy and cost pressures." 

“I’ve run a fairly large brokerage in California before this, and my cost base here in B.C. is about two-thirds more than it was in California, which is not a cheap place either. Our insurance costs here, simple things like broadband and cell phone bills, are significantly higher than they are in the U.S., which makes us less competitive.” 

— Ross McCredie, Chairman and CEO, Sutton Group Realty Services, quoted in Business in Vancouver, December 2025 

Similar patterns are visible beyond real estate. Data tracking venture capital investment and founder location decisions, as shown in this report from FLOAT, show that capital and decision-makers increasingly choose jurisdictions outside Canada over time, a signal that confidence and predictability matter across sectors. 

Looking ahead to 2026, McCredie cautions that real estate conditions may remain difficult, especially in Western Canada and British Columbia. His concern is not cyclical volatility, but structural pressure: declining private investment, rising operating costs, and capital flowing to U.S. markets where development and business conditions are more pro-business(?). 

The practical question is what these signals mean for the long-term stability of homeownership. 

Why investment conditions matter to homeowners

Housing does not exist in isolation. Investment influences how quickly homes are built, maintained, insured, and financed. When private capital retreats and costs rise, the result is not just fewer projects; it is sustained pressure on affordability and household choice. 

Public reporting supports this view.

National indicators, including CREA’s January 2026 quarterly outlook and the Bank of Canada’s financial stability reporting, suggest that housing conditions through 2026 will be shaped less by short-term price movement and more by constrained supply, higher ownership costs, and household vulnerability. Business investment remains cautious amid policy, trade, and cost uncertainty, limiting the system’s ability to respond quickly to housing demand. 

For homeowners, the key issue is not forecasting outcomes; it is recognizing that prolonged uncertainty makes housing more difficult and expensive to deliver. 

Interpreting housing conditions through a fiduciary lens

Housing decisions affect households for decades, not quarters. In that context, a fiduciary lens focused on long-term thinking is essential. It emphasizes clarity, realism, and household resilience over short-term performance. 

From this perspective, the most relevant considerations are not market sentiment, but concrete risks such as: 

• Ongoing cost-of-ownership pressures 

• Market liquidity and the ability to move when needed 

• Exposure at mortgage renewal or refinancing 

• The durability of household financial plans 

Stability in housing is not created by confidence alone. It depends on predictable systems, transparent information, and conditions that support responsible long-term ownership. 

Steps homeowners can take to protect stability

While macro conditions are outside individual control, households can still strengthen their position. 

Practical steps include: 

• Planning in advance, particularly around mortgage renewals and major financial decisions 

• Protecting the asset first, ensuring critical maintenance preserves the home’s long-term integrity and value 

• Relying on local data, not national averages, when assessing pricing, supply, and market liquidity 

• Stress-testing household budgets, not to assume the worst, but to ensure plans remain viable if costs stay high longer than expected. 

These actions are not defensive. They are responsible. 

What should Canadians expect from housing policy in challenging years?

If capital remains cautious and private investment continues to retreat, housing policy should be evaluated by one standard: its impact on household stability. 

A homeowner-centric framework prioritizes: 

• Predictable approvals and timelines that allow supply to respond reliably 

• Competitive cost structures that do not quietly burden ownership 

• Stable, evidence-based regulation that supports long-term confidence 

• Policies measured by resilience outcomes, not short-term optics 

Housing systems succeed when they reward responsibility and reduce uncertainty for families. 

Sutton’s role

At Sutton, we do not view housing as a performance metric. We view it as a national standard. Our role in times like this is to help homeowners interpret risk, plan with discipline, and make decisions grounded in reality rather than noise. This is not a slogan. It is the standard we apply across markets and cycles to support responsible homeownership in Canada.