Critics Question Government Plan to Buy Unsold B.C. Condos for Affordable Housing

Noah Chen

6/23/20263 min read

A government plan to buy vacant condo units in British Columbia and convert them into affordable housing is drawing criticism from housing experts and opposition politicians, who say it could amount to a bailout for developers.

The proposal comes as thousands of completed condo units sit empty in Metro Vancouver and some developers face financial pressure in a slowing real estate market.

Prime Minister Mark Carney and B.C. Premier David Eby announced the plan as a way to make use of existing housing stock in “priority growth areas.” The federal housing ministry has not yet provided a cost estimate, saying details will be worked out in the coming weeks.

Critics Ask Who the Plan Really Helps

Andy Yan, an urban planner and director of Simon Fraser University’s City Program, said the plan raises major questions about whether public money is being used to help people in need of housing or to rescue developers from poor business decisions.

Yan questioned whether the strategy amounts to a bailout for developers who are unwilling to lower prices in response to weaker market conditions.

Recent data from the Canada Mortgage and Housing Corporation shows there were 4,376 completed condos sitting empty in Metro Vancouver as of last month, a 76 per cent increase from the year before.

Yan said his analysis shows that about one-third of Metro Vancouver condos without owners are priced above $1 million, raising questions about how large a discount governments would need to secure in order to make the units truly affordable.

Opposition Calls Plan a Developer Bailout

B.C. Conservative MLA John Rustad criticized the plan, saying government regulation and taxes have contributed to the high cost of housing development.

He said it is “ludicrous” for governments to create pressure in the housing market and then respond with what he described as a bailout.

Jill Atkey, CEO of the B.C. Non-Profit Housing Association, also criticized the proposal, pointing to the province’s decision to cut the Community Housing Fund.

She said spending public money to rescue the condo market or private development sector is a misuse of public funds, especially after affordable rental projects were put at risk.

Governments Say Empty Units Could Become Homes

Carney said the government intends to use the “right financial mechanisms” to take condos that might otherwise remain empty for years and convert them into affordable housing.

He did not say whether governments would buy units in bulk at below-market prices.

Eby said the plan recognizes that there is already housing stock available that people would like to live in or buy as a first home, but cannot afford under current market conditions.

$3B Infrastructure Fund Also Announced

Carney and Eby also announced a $3-billion fund, split equally between Ottawa and B.C., to support housing-enabling infrastructure over the next 10 years.

The funding is intended to help lower municipal fees paid by developers and support infrastructure such as water systems, wastewater systems and local roads.

Carney said reducing development cost charges for multi-unit housing by up to 50 per cent could save builders as much as $40,000 per unit.

Chris Atchison, president of the B.C. Construction Association, said the funding could give builders more certainty and help support future housing construction, particularly as the sector deals with workforce and supply-chain challenges.

Greens Say Plan Fails to Address Root Problem

B.C. Green Party Leader Emily Lowan called the proposal a corporate “bait and switch.”

She said the province had cut a major affordable housing program and was now offering support to private developers instead.

Lowan said buying unsold condos for affordable housing may help in some cases, but argued that more support for developers will not solve the deeper problem.

She said years of underinvestment have weakened the government’s ability to directly build housing, leaving the province dependent on private-sector solutions during a housing crisis.

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