British Columbia's provincial leaders have firmly rejected calls from Vancouver's leading real estate developers to relax restrictions on foreign investment in the housing market. Despite developers arguing that current policies are hindering new home construction and impacting jobs, government officials maintain their stance, emphasizing the need to prioritize housing for residents and prevent a return to speculative market conditions.
Executives from prominent Vancouver-based real estate firms, including Beedie Living, Bonnis Properties, and Polygon, have urged the B.C. government and Prime Minister Mark Carney to reconsider the provincial foreign buyer tax and the federal ban on foreign residential property purchases. In a letter dated July 29, they argued that these policies, intended to curb speculation and improve affordability, are inadvertently stifling the construction of new homes and affecting employment within the sector.
The developers pointed to a significant 50% decrease in new housing starts in B.C. in March compared to the previous year as evidence of the detrimental impact. They stated that many real estate companies are already facing difficult decisions, including scaling back operations and reducing their workforce. The group believes that the current backlog of unsold condos, which has reached a record high, discourages developers from initiating new projects, leading to the current calls for easing the foreign buyer ban.
B.C. Housing Minister Christine Boyle stated that while the need for more homes is acknowledged, the government has no intention of reverting to previous policies that allowed unchecked foreign investment. She expressed concerns about empty properties and rising housing prices associated with such practices. Premier David Eby echoed this sentiment, emphasizing that the focus remains on building housing for British Columbians and Canadian families, not for speculative purposes.
Eby confirmed that the province has no plans to reduce or eliminate the foreign buyer tax, noting that the revenue generated from it will be used to fund public services. The federal government, through a spokesperson for the Ministry of Housing, Infrastructure and Communities, reiterated its commitment to ensuring homes are used by Canadians rather than as speculative assets. While the federal ban was slightly eased in 2023 to allow temporary residents on work permits to purchase property and to lift restrictions on vacant land, the core measures remain in place.