Federal and B.C. Governments Launch Partnership to Convert More Than 2,200 Vacant Vancouver Condos into Affordable Housing

The announcement comes as Metro Vancouver faces record levels of completed but unsold condominium inventory. According to Canada Mortgage and Housing Corporation (CMHC), the region had 4,376 completed and unabsorbed condominium apartments in May 2026, a 76% increase from a year earlier and the highest level in roughly two decades. Many of these units, particularly in the City of Vancouver, are priced above $1 million. Developers have generally been unwilling to significantly discount completed inventory, preferring to hold units until market conditions improve, contributing to a growing inventory overhang.

The proposal initially attracted criticism because few financial details accompanied the announcement. Opposition Leader Pierre Poilievre characterized the initiative as a taxpayer-funded bailout for condominium developers and argued governments should instead focus on reducing taxes, fees, and regulatory barriers that increase housing costs.

Following that criticism, Prime Minister Carney acknowledged that the initial announcement had not clearly explained the financing model. He said the proposal contemplates a program with a potential value of approximately $1.45 billion, with the federal government contributing roughly 10%, the Province of British Columbia providing a similar contribution, and the balance financed through mortgage debt. Carney emphasized that no specific acquisitions have yet been approved and that the figures represent the program’s potential scale rather than committed purchases.

Premier Eby argued that the public investment functions primarily as upfront equity supporting mortgage-backed financing rather than a direct subsidy to developers. The province maintains that the resulting housing assets would remain on the public balance sheet while creating opportunities for households to transition from renting to homeownership through the planned rent-to-own structure. Details regarding purchase discounts, developer participation, resale restrictions, and affordability requirements remain under development.

• Supporters argue the initiative addresses two challenges simultaneously: bringing completed homes into use immediately while avoiding prolonged market stagnation caused by large volumes of unsold inventory.
• Critics respond that purchasing existing market-rate condominiums risks insulating developers from market losses and may distort price signals that would otherwise improve affordability.

Many of the program’s most significant details, including which projects qualify, how units will be valued and acquired, eligibility requirements for households, affordability definitions, and the final financing structure are expected to be released later in 2026.