B.C. Premier David Eby has clarified that the province's $500 million condo buy-up program is not a bailout and will not provide financial aid to developers in the City of Vancouver. Speaking to reporters on Tuesday, Eby emphasized that the initiative is designed to increase housing supply and affordability, not to rescue struggling developers.
Program details and intent
The program, announced earlier this year, allows the province to purchase unsold condominium units from developers to convert into affordable rental housing. Eby stated that the funds are targeted at projects that are already under construction or near completion, ensuring that units are delivered to the market quickly. “This is about getting homes built and occupied, not about propping up developers,” he said.
Developer concerns dismissed
Some industry observers had speculated that the program could indirectly benefit developers by providing a guaranteed buyer for unsold inventory. However, Eby rejected this notion, noting that the province is only stepping in where market conditions have stalled sales. “We are not here to make developers whole; we are here to create housing for people,” he added.
The premier also clarified that the program excludes luxury projects and focuses on mid-range and affordable units. Developers must meet strict criteria, including a commitment to maintain affordability for at least 20 years.
Impact on Vancouver's housing market
According to recent data from the Canada Mortgage and Housing Corporation, Vancouver's rental vacancy rate remains below 1%, while condo inventory has climbed due to rising interest rates and slowing demand. The buy-up program aims to address this mismatch by converting unsold condos into rentals.
“We are running blind on drug shortages,” said an Ontario pharmacist in a separate interview, highlighting broader economic pressures. But Eby insisted the condo initiative is a targeted measure. “This is not a blank cheque for developers; it's a strategic investment in housing,” he said.
Political reaction
Opposition critics have questioned whether the program amounts to a hidden subsidy for developers. BC Liberal housing critic Peter Milobar argued that the government should instead focus on reducing red tape and taxes. “Buying up condos doesn't fix the root causes of unaffordability,” Milobar said in a statement.
Eby countered that the program is a necessary short-term intervention. “We have a housing crisis. Doing nothing is not an option,” he said.
