The British Columbia government has lowered the threshold for its homeowner grant program for the first time since 2020, a move directly linked to declining assessed property values in the province's Lower Mainland, particularly in Vancouver. This marks a significant shift in the real estate landscape, impacting property tax relief for many homeowners.
Key Takeaways
- The B.C. homeowner grant threshold has been reduced to $2.075 million for this year, down from $2.175 million in the previous year.
- This is the first decrease in the threshold since 2020, reflecting a broader trend of falling home values in Metro Vancouver.
- Assessed values in the Lower Mainland have seen an average decrease of up to 10 percent, with specific areas like White Rock experiencing sharper declines.
- Factors contributing to the market slowdown include the federal foreign buyer ban, B.C.'s foreign buyer tax, and the speculation and vacancy tax.
Falling Property Values in Metro Vancouver
BC Assessment reported that homeowners in Metro Vancouver could anticipate property value decreases of up to 10 percent, based on valuations from July 1 of the previous year. This decline is attributed to a softening housing market, with price drops particularly noticeable in the luxury segment. Developers and industry experts point to government policies such as the federal foreign buyer ban, B.C.'s foreign buyer tax, and the speculation and vacancy tax as key contributors to this trend.
Vancouver architect and real estate consultant Michael Geller noted that the luxury market has undeniably been impacted by the foreign buyer ban. The B.C. Ministry of Finance confirmed the new threshold of $2.075 million, a decrease of approximately 4.6 percent from last year's $2.175 million. This marks the first time the threshold has fallen since 2020, a period when home prices previously moderated across B.C.
Regional Assessment Variations
While the Lower Mainland experienced notable decreases, other regions in B.C. saw more stable assessed values. Vancouver Island and the Southern Interior experienced fluctuations ranging from a five percent increase to a five percent decrease. The North and Kootenays saw more significant shifts, with valuations ranging from a 15 percent increase to a five percent decrease.
Bryan Murao of BC Assessment stated that the "softening housing market is being reflected in 2026 property assessments." In the Lower Mainland alone, total assessment values dropped to $1.92 trillion for 2026, down from approximately $2.01 trillion the previous year. White Rock saw the sharpest decline in the region, with average single-family home values falling by nine percent to $1.58 million. University Endowment Lands, Richmond, and Langley also experienced eight percent drops. Only a few communities in the Lower Mainland saw increases, including Anmore (four percent), Harrison Hot Springs (three percent), Squamish (two percent), and Pemberton (one percent).
Criticisms and Future Outlook
Michael Geller expressed criticism regarding certain aspects of the homeowner grant, suggesting that the province should consider offering more grants to renters or implementing regional variations to the grant threshold. He questioned the rationale of providing homeowner grants to individuals in areas with lower property values on million-dollar homes.
The grant threshold had seen a steady increase from $1.525 million to a peak of $2.175 million last year before this year's reduction. The ministry clarified that property owners whose homes exceed the threshold may still be eligible for a partial grant through the program's gradual phaseout. Additionally, homeowners meeting specific criteria, such as having a dependent child, being over 55, widowed, or having disabilities, may qualify for other relief programs like the B.C. property tax deferment program.
The impact of the market slowdown is evident even at the highest end of the market, with Lululemon founder Chip Wilson's Vancouver mansion assessed at approximately $73.5 million, an 11 percent decrease from its previous valuation of $82.7 million. Realtor Layla Yang echoed concerns about the foreign buyer ban's effect on the luxury market, noting that many potential buyers have shifted their investments to other global cities like Dubai.
Developers have also argued for further reductions in luxury valuations. Holborn Group's appeal regarding a West Vancouver mansion's valuation, though initially rejected, highlights ongoing debates about market peaks and the influence of taxes and capital outflow restrictions on property prices.
