The British Columbia government and federal authorities are launching a $1.45-billion program to purchase more than 2,200 unsold condominiums for conversion into affordable, rent-to-own housing. While Premier David Eby and Mark Carney frame the initiative as a pragmatic response to the housing crisis, real estate industry leaders, including the Urban Development Institute, contend the program was not requested by developers and may prove administratively complex.
Why Is the Industry Pushing Back Against the Condo Buyout?
Despite government framing, industry leaders argue the program does not address the core barriers to housing development. Rick Ilich, CEO of Townline Homes and chair of the Urban Development Institute, stated he is not aware of any developer who consulted with the government on this specific plan prior to its announcement.
Ilich questioned the logistical burden of the state acting as both a property owner and a landlord. “The complexity of a province buying homes, and then creating a structure wrapped around that, and then playing landlord around the rent-to-own program—like if anybody can make rent-to-own work, government can, because they can give away money where they feel like it. But why create such complexity?” Ilich said.
The $1.45-billion budget for this program is supported by $145 million from the B.C. government and $145 million from Ottawa, with the remaining balance sourced through financing arrangements.
How Does the Government Justify the Purchase?
Premier David Eby has dismissed claims that the plan constitutes a developer bailout. During an announcement on Thursday, Eby compared the acquisition strategy to purchasing assets “on liquidation.” He noted that the government aims to acquire housing at prices below construction costs to provide immediate relief for those unable to wait for new supply.
“When you buy something that’s on liquidation, you don’t say to yourself, ‘I’m supporting a bailout for the store,’” Eby stated. He clarified that there are no plans to purchase units in Vancouver, noting that the numbers just don’t work to convert them to affordable housing.
Mark Carney emphasized that the program is contingent on market feasibility. “If those opportunities present themselves—we’ve created the flexibility in order to get affordable housing to people at a cheaper price than could be built—we’ll do it,” Carney said.
What Are the Alternatives Proposed by Developers?
Industry stakeholders have suggested that tax relief would be more effective than direct government acquisition. Mark Goodman, principal at Goodman Commercial, described the current plan as a waste of taxpayers’ money. He suggested the province follow the model recently adopted in Ontario, where an agreement with Ottawa allows for the removal of certain taxes on home sales, potentially saving buyers up to $130,000 on homes valued up to $1.5 million.
Similarly, the Urban Development Institute has advocated for the fulfillment of a 2024 provincial campaign promise: a program to cover up to 40 per cent of the purchase price on 25,000 new units over five years. This loan-based model is intended to assist middle-income families in securing a down payment, with the loan repaid upon the sale of the unit or over a 25-year term.
The Ministry of Housing and Municipal Affairs confirmed the 40-per-cent purchase assistance model is currently being piloted at the Heather Lands project in Vancouver, a collaboration with the Musqueam, Squamish, and Tsleil-Waututh Nations.
Frequently Asked Questions
Is this program a bailout for developers?
Premier David Eby has explicitly rejected the term “bailout,” arguing that the government is purchasing units at prices below construction costs, rather than rescuing struggling firms.
Will these units be available in Vancouver?
No. Premier Eby stated that the government does not plan to purchase units in Vancouver because the financial numbers do not support the conversion of those units into affordable housing.
How does the rent-to-own component work?
According to government details, occupants in the program will pay monthly rent, with a portion of those payments being credited toward a future down payment on the unit.
What are your thoughts on the government’s strategy to address housing supply? Share your perspective in the comments section below or subscribe to our newsletter for ongoing updates on provincial housing policy.
