The British Columbia government’s plan to buy up to 2,200 unsold condos has sparked debate over whether it’s a housing fix or a bailout. The $1.45-billion plan, announced in June, aims to create affordable housing by purchasing unsold condos and putting them into a rent-to-own program.
According to the report, the federal and provincial governments will contribute $150 million each, with the rest covered by financing. This plan is similar to Ontario’s plan to buy 2,200 condos, with the provincial government contributing $300 million and the rest footed by investors.
Experts say buying over a third of the unsold condo inventory in the province could significantly interfere with the market and affect prices. Marc Lee, a senior economist with the Canadian Centre for Policy Alternatives, notes that the plan “puts a floor on the prices of those condos, because prices are dropping right now and would continue to drop in the absence of this program.”
Lee also notes that the program could create housing that is still unaffordable, given that even discounted units could still be over $600,000. The amount of discount the governments could get on the unsold housing is unclear, and developers will likely still want to break even.
Vancouver Realtor Steve Saretsky thinks the program isn’t really about creating affordable housing, but rather an excuse to bail out developers and banks. He believes the governments are getting “tapped on the shoulder” by either the banks or the developers, despite denials from B.C. Premier David Eby.
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Saretsky points out that the bulk of construction financing in the Fraser Valley and the B.C. Interior is done by credit unions, and the B.C. government backs 100 per cent of those deposits. This could give the provincial government motivation to get the units sold and avoid a financial crisis.
The province has about 5,849 completed and unabsorbed condos as of May 2026.
The Canada Mortgage and Housing Corporation notes that 4,376 of these condos are in Metro Vancouver, where prices are higher.
Lee notes that the program’s focus outside of Vancouver, given the higher prices in that market, may not be enough to create truly affordable housing. The plan’s success will depend on the discount the governments can get on the unsold housing and the ability of buyers to afford the condos in the long run.
The plan could have unintended consequences, such as keeping prices high and giving developers the sense that they’re protected from failure.
The plan’s impact on the market will likely depend on various factors, including the ability of the governments to negotiate a good price for the condos and the ability of buyers to afford them.
The B.C. government’s plan is a significant investment in the province’s housing market.
Its impact will be closely watched.
