Economy
B.C. Developers Reject Government’s ‘Liquidation’ Buyout Plan for Unsold Condos
B.C. developers push back against a $1.45 billion federal-provincial plan to buy 2,200 unsold condos, calling for tax relief and shared equity over buyouts.
The Debate Over Government Intervention in Real Estate
British Columbia’s real estate developers are pushing back against a newly unveiled federal-provincial initiative designed to purchase more than 2,200 unsold condos and convert them into affordable housing. While Premier David Eby and Prime Minister Mark Carney have framed the $1.45 billion program as a strategic opportunity to acquire housing at “liquidation” prices, industry leaders argue the plan is overly complex and fails to address the root causes of the housing crisis.
A Bailout or a Bargain?
The program involves $145 million in direct contributions from both the federal and provincial governments, with the remainder of the budget coming from financing. Under the proposal, units would be placed into a rent-to-own program, allowing occupants to apply a portion of their monthly rent toward a down payment. Premier Eby has adamantly denied that the plan is a “bailout” for developers who are struggling to offload inventory in a cooling market.
“When you buy something that’s on liquidation, you don’t say to yourself, ‘I’m supporting a bailout for the store,’” Eby said, noting that the government can currently purchase units at below construction costs. He emphasized that if the government does not act to secure these units, private investors eventually will, potentially keeping them out of reach for middle-income families.
Industry Skepticism and Alternative Solutions
Despite the government’s optimism, the Urban Development Institute (UDI) claims it was not consulted prior to the announcement. Rick Ilich, CEO of Townline Homes and chair of the UDI, questioned the government’s ability to act as an effective landlord within a complex rent-to-own structure. Instead, many in the industry are calling for the province to honor a 2024 campaign promise to cover up to 40 per cent of the purchase price on 25,000 new units through shared equity loans.
Critics like Mark Goodman, principal at Goodman Commercial, described the program as a waste of taxpayer funds. Goodman suggested that rather than buying individual units, the government should focus on removing taxes from home sales to lower costs for all buyers. As the market continues to shift, the efficacy of this multi-billion-dollar intervention remains a point of intense contention between policymakers and the developers tasked with building the province’s future.