B.C.’s Eby compares condo plan to ‘liquidation’ at below construction costs

British Columbia Premier David Eby has characterized a joint federal-provincial initiative to convert unsold condominiums into affordable housing as akin to purchasing items "on liquidation." The plan, announced alongside Prime Minister Mark Carney during a visit to Vancouver, aims to address housing affordability by acquiring more than 2,000 vacant condo units.

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The premier says he would like the opportunity to launch the program so people can see the plan in action, which would address the criticism of a bailout for developers who can’t sell their units.

Eby and Carney defended the multibillion-dollar agreement, which also covers investments in energy, resources, and transportation, against criticism that it amounts to a bailout for developers struggling to sell their units. Eby expressed a desire to see the program implemented to demonstrate its effectiveness in providing affordable housing. He noted that the plan does not involve purchasing units in Vancouver, as the financial calculations for conversion to affordable housing "just don't work" there.

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Carney says it is taking advantage of distress in some developers for the purposes of securing affordable housing for families.

Carney stated that the initiative seeks to capitalize on distress within the developer market to secure affordable housing for families. He emphasized that purchases would only proceed if financially sensible, allowing for the acquisition of housing at a lower cost than new construction. "If those opportunities present themselves, we’ve created the flexibility in order to get affordable housing to people at a cheaper price than could be built, we’ll do it," Carney said.

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You’re hearing directly from developers that this is not what they asked for and it is not from their perspective a bailout.

Opponents have labeled the plan a bailout, a description Eby strongly refutes. He cited developers' own statements that they did not request such a program and do not view it as a bailout. "When you buy something that’s on liquidation, you don’t say to yourself, ‘I’m supporting a bailout for the store,’" Eby argued. He framed it as a pragmatic opportunity to address the urgent need for housing by acquiring properties below construction costs, suggesting that if the government doesn't act, others will.

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This is an opportunity for us to recognize the reality that people can’t wait for housing. We can buy housing at below our construction cost and make it available affordably, and if we don’t do it, someone else will do it.