Province buying 2,200 condos for affordable housing amid industry backlash

British Columbia and Canada are partnering to purchase more than 2,200 vacant condominium units and convert them into affordable housing—a plan that's already sparking fierce debate over whether it represents efficient crisis response or a costly developer bailout.

The joint announcement includes a $5 billion infrastructure investment over 10 years to reduce development charges for new housing projects by up to 50 percent, plus $284 million in federal funding to cut barriers to construction. The condo conversion program will use "innovative financing tools" through Build Canada Homes and BC Housing, though the governments have released few details on pricing, affordability levels, or which developers will be paid.

Conservative critics argue the plan removes any incentive for developers to lower prices if government will buy vacant units at a loss. "Where can we remove some of those barriers to construction costs so that people can afford to get in and they don't have to put up with the kinds of onerous pricing that we now see?" asked Conservative housing critic Linda Hepner, suggesting market forces should solve the problem instead.

MLA Kerry-Lynne Findlay said the NDP government has created a "hostile" environment for housing with high taxes and excessive regulations. However, the governments say the program offers "one of the fastest and most efficient ways to increase housing supply," allowing people to move into converted units far sooner than waiting for new construction.

The scale is significant: the acquisition could wipe out roughly half of Metro Vancouver's current unsold new condo inventory. Beyond the 2,200 units, the partnership includes modernizing health infrastructure, wastewater systems, and local roads across the province.