Canada Housing Market

The federal government’s plan to purchase thousands of unsold condominiums in British Columbia is generating both support and criticism as Canada’s housing slowdown continues.

Prime Minister Mark Carney recently announced a partnership with the Government of British Columbia to convert more than 2,200 vacant condominium units into affordable housing. Supporters say the plan could quickly increase affordable housing supply, while critics argue it risks becoming a bailout for developers if taxpayers pay too much for the units.

Ottawa And B.C. Want To Convert Unsold Condos Into Affordable Housing

Under the proposed partnership, the federal and British Columbia governments plan to acquire more than 2,200 newly built but unsold condominium units in Metro Vancouver.

The homes would be converted into affordable housing, including rent-to-own opportunities.

The initiative is part of the federal government’s broader housing strategy aimed at increasing affordability while reducing the number of completed homes sitting vacant.

Why The Plan Is Raising Questions

The announcement comes as Vancouver faces a growing inventory of unsold new condominiums.

According to the Canada Mortgage and Housing Corporation (CMHC), Metro Vancouver had 4,376 completed but unsold condominium units as of May 2026, a 76% increase from one year earlier.

Toronto is facing similar challenges. Urbanation reported a record 4,295 completed but unsold condominiums in the Greater Toronto Area during the first quarter of 2026.

With developers struggling to sell new inventory, some critics argue government intervention could shield builders from normal market forces.

Experts Say The Details Will Matter

Housing experts interviewed by CBC News say the success of the program will depend almost entirely on how the purchases are structured.

Mike Moffatt, founding director of the Missing Middle Initiative at the University of Ottawa, said the proposal could benefit both taxpayers and homebuilders if governments purchase the units at substantial discounts.

“If they’re paying something close to full price, then yeah, I think it would be fair to characterize that as a bailout,” Moffatt told CBC News.

“But if they’re coming in and forcing companies to take a steep discount, and at the same time acquiring homes that they were going to build anyway, then I think this can make sense.”

Moffatt said the public still lacks important details about how units will be selected and what prices governments are willing to pay.

Others Say The Market Should Be Left Alone

Some housing experts believe governments should allow the market to adjust naturally instead.

Andy Yan, director of the City Lab at Simon Fraser University, questioned whether government intervention is necessary given that condo prices have already begun declining.

He also suggested buyers who recently purchased units could question why governments may be buying identical homes in the same buildings under different pricing arrangements.

Yan said targeted responses may be more appropriate than broad government intervention.

Developers Reject The Bailout Label

Developers say the program is being misunderstood.

Brad Jones, Chief Development Officer at Wesgroup Properties, said the industry was not seeking a bailout and instead has advocated for measures that reduce development costs, including lower municipal development charges and tax relief.

Meanwhile, Wendy McNeil, CEO of the Homebuilders Association Vancouver, said lowering development charges helps support housing construction rather than rescuing developers.

The Debate Reflects Canada’s Condo Market Slowdown

The proposal arrives as Canada’s two largest condominium markets continue facing weak demand.

Higher borrowing costs, affordability challenges, and slowing investor activity have left thousands of newly completed units unsold in both Vancouver and Toronto.

Governments are now attempting to balance two competing goals: creating more affordable housing while supporting continued home construction.

Whether this latest initiative ultimately benefits taxpayers, homebuyers, developers, or all three may depend on the details that have yet to be released.

References

Logan, N. (2026, June 25). Mark Carney’s plan to bulk-buy unsold Vancouver condos might be a bailout, but it doesn’t have to be. CBC News. https://www.cbc.ca/news/politics/carney-condo-conversion-bc-affordable-housing-1.7571699

Canada Mortgage and Housing Corporation. (2026). Housing market information portal. https://www.cmhc-schl.gc.ca/

Urbanation. (2026, April). Greater Toronto Area condominium market survey. https://www.urbanation.ca/

Government of Canada. (2026). Canada-British Columbia partnership on condo conversion. https://www.canada.ca/