Buying Vacant Condos Could Help B. C. ’s Housing Market and Economy
By Sudhir Anand The federal and British Columbia governments are facing criticism over their proposal to purchase vacant condominium units and convert them into affordable housing. Opponents have d…
- Advertisement -The federal and British Columbia governments are facing criticism over their proposal to purchase vacant condominium units and convert them into affordable housing. Opponents have described the plan as a bailout for developers, but that characterization overlooks the wider economic risks created when thousands of newly constructed homes remain empty. According to Canada Mortgage and Housing Corporation data cited by CBC News, 4,376 completed condominium units were sitting without buyers in Metro Vancouver as of May 2026. That represented a 76 per cent increase from the previous year. These vacant units are not simply a problem for individual developers. They are a sign that an important part of the provincial economy has stalled. Real estate and construction support thousands of jobs across British Columbia. Developers employ construction workers, engineers, architects, electricians, plumbers, real estate agents, lawyers and many other professionals. When completed units do not sell, developers lose access to the capital needed to repay loans and begin new projects. This can lead to insolvencies, cancelled developments, layoffs and a further reduction in future housing supply. - Advertisement -Allowing the condominium market to collapse would not automatically make housing affordable. Some developers could fail, projects could be abandoned and lenders could become more cautious about financing new construction. That would reduce competition and make it even more difficult to build the homes B. C. will need in the years ahead. The government’s proposal could address two problems at the same time. It could provide affordable homes to people who are currently priced out of the market while also clearing completed inventory and restoring confidence in the development sector. Rather than leaving newly built units vacant for years, governments could negotiate bulk discounts and place those homes into affordable rental, nonprofit or first time buyer programs. Prime Minister Mark Carney has said the government intends to use the appropriate financial mechanisms to acquire units that might otherwise remain empty for several years. The final details will be critical. Governments should not pay inflated prices or protect developers from every poor business decision. Purchases should be negotiated well below previous asking prices, with independent appraisals and full public transparency. Critics are correct to demand accountability. Public money should not be used to guarantee corporate profits. However, refusing to intervene simply because developers may benefit would ignore the interests of workers, renters, homeowners, lenders and municipalities that depend on a functioning housing market. The governments have also announced a $3 billion infrastructure fund, divided equally between Ottawa and British Columbia over 10 years. The money would support water systems, wastewater facilities, roads and other infrastructure needed for housing construction. Lowering municipal development charges for multi unit housing could reportedly save builders as much as $40,000 per unit. Reducing these costs could encourage more construction at a time when high interest rates, labour shortages, material costs and weak presale demand have made new projects increasingly difficult to finance. The important condition should be that savings provided to developers are connected to measurable public benefits, including lower prices, affordable units and firm construction timelines. Housing policy cannot be based only on punishing developers when the market declines. Governments must protect taxpayers, but they must also recognize that housing construction is a major economic activity. A severe downturn in the sector would affect employment, consumer spending, municipal revenues and the broader provincial economy. Purchasing vacant condominiums at a substantial discount is not necessarily a bailout. Properly structured, it could be a strategic investment that converts unused private inventory into affordable public housing, protects construction employment and prevents a deeper economic slowdown. - Advertisement -British Columbia needs more affordable housing, but it also needs a functioning real estate and construction industry. A carefully negotiated acquisition program can support both objectives. The priority should be to secure strong value for taxpayers while putting completed homes into the hands of people who need them.