BC and federal condo buy-up plan targets unsold homes for rent-to-own. Eby says it’s not a bailout for developers in Vancouver.
BC condo buy-up sparks debate in housing plan
VICTORIA — A new housing plan is stirring conversation across British Columbia. However, Premier David Eby says the idea is simple. Moreover, he insists it is not a bailout for developers in Vancouver.
Meanwhile, the joint federal and provincial plan is aiming to reshape how empty condos are used. In addition, it focuses on turning unsold homes into opportunities for buyers.
What the condo plan actually does
First, the plan targets about 2,200 empty condos across British Columbia. Moreover, it is a partnership between the B.C. government and the federal government led by Mark Carney.
Additionally, the idea is to purchase unsold units and then offer them through a rent-to-own model. As a result, more people could enter the housing market over time.
However, the government says this will not focus only on one city. Instead, it will look at areas south of the Fraser River, Vancouver Island, and the Okanagan. Therefore, the plan spreads across the province.
Why Eby says it is not a bailout
Furthermore, Eby argues that developers will not get rescued by this plan. Instead, he says the Vancouver condo market will adjust on its own.
Moreover, he explains that prices in parts of Vancouver are too high for the program to benefit developers directly. Therefore, he says “the numbers don’t work” in that market.
In addition, he claims many developers may even take losses. However, he stresses that the goal is not to protect profits. Instead, it is to open housing doors for buyers.
How government buying could lower costs
Meanwhile, the government says bulk buying changes the math. For example, purchasing entire buildings or buying in bankruptcy situations can lower prices.
Moreover, Eby says these deals are not available to regular buyers. Therefore, governments may secure homes below typical market value.
As a result, the plan aims to use public mortgages as long-term assets. However, officials argue taxpayers will not face extra costs.
Developers push back on the plan
However, not everyone agrees with the government’s approach. Instead, some developers want tax relief on new homes.
For example, the Urban Development Institute has called for GST removal on new builds. Moreover, they say this would support supply and reduce costs.
However, Eby rejects this idea. Instead, he argues it would act like a bailout. Therefore, he says it would protect profits instead of lowering prices for buyers.
What happens next
Meanwhile, details of the program are still being finalized. Moreover, the province says more information will come soon.
In addition, the debate over housing affordability continues across Victoria and beyond. Therefore, both governments face pressure to show results.
Finally, the plan aims to move unsold condos into public use. However, questions remain about how fast it will work and who will benefit most.
