Prime Minister Mark Carney and B.C. Premier David Eby have announced a plan to spend up to $3 billion to purchase vacant condos in Metro Vancouver to convert them into affordable housing. This initiative follows data from the Canada Mortgage and Housing Corporation showing that 4,376 completed condos were sitting empty last month, marking a 76 per cent increase from the previous year.
How will the government fund these housing initiatives?
The $3 billion program will be split equally between the federal government and the province of B.C., focusing on “priority growth areas.” To support broader construction, Prime Minister Carney also announced a $5-billion fund that municipalities can access to pay for new homes.
As part of the strategy, the government intends to lower development cost charges for multi-unit housing by up to 50 per cent over the next 10 years. According to Carney, these reductions could save builders up to $40,000 per unit, while the government provides funding for essential infrastructure like water, wastewater, and local roads.
- Total condo purchase fund: $3 billion
- Municipal housing fund: $5 billion
- Potential developer savings: $40,000 per unit
Why are housing advocates and politicians criticizing the plan?
Critics have characterized the spending as a “bailout” for the private development sector. Andy Yan, an urban planner and director of Simon Fraser University’s City Program, questioned whether the funds are helping the industry or simply subsidizing “bad business decisions” by developers.
B.C. Conservative MLA John Rustad stated that government over-regulation has added costs to the market, suggesting that the government is providing a bailout to an industry it helped push into crisis. Similarly, B.C. Green Party Leader Emily Lowan described the move as a “corporate bait and switch,” noting that the B.C. NDP previously axed a $3 billion affordable housing program that left thousands of low-income units half-built.
“To spend public dollars to bail out the condo market or the private development sector, I think frankly is a misuse of public funds,” said Jill Atkey, head of the B.C. Non-Profit Housing Association.
Atkey noted that this plan arrives just months after the government axed the Community Housing Fund, a decision she claims put thousands of affordable rental units in jeopardy. This creates a contrast between the new $3 billion developer-focused funding and the previous cuts to non-profit rental programs.
What could be the impact on the B.C. housing market?
The impact of the funding may depend on the price of the units being purchased. Yan’s analysis shows that one-third of all ownerless condos in Metro Vancouver cost more than $1 million, raising questions about how deep a discount the government must obtain to achieve affordability.
On the industry side, Chris Atchison, head of the B.C. Construction Association, suggested the funding could provide builders with much-needed certainty. He argued the money may give the sector the “confidence that it can go forward with planning and building” despite ongoing workforce and supply chain issues.
- How many condos are currently empty in Metro Vancouver?
- There were 4,376 completed condos sitting empty as of last month.
- How much could builders save under the new plan?
- Builders could save up to $40,000 per unit by lowering development cost charges by up to 50 per cent.
- What was the total value of the affordable housing program that was previously axed?
- B.C. Green Party Leader Emily Lowan stated the government axed a $3 billion affordable housing program.
Will government intervention in the condo market successfully lower prices for first-time buyers?
