B.C. NDP's Proposed Tax on Unsold Condominiums Draws Criticism from Home Builders

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KELOWNA, B.C. — David Eby, leader of the B.C. NDP, has put forward a proposal for a new tax targeting completed condominiums that remain unsold for over a year. This initiative has prompted a strong response from the Canadian Home Builders’ Association Central Okanagan (CHBA-CO), which argues that the proposal overlooks the core issues affecting the housing market. "When the premier claims he is taking a stand against developers, he should consider who actually constructs these homes," remarked Cassidy deVeer, executive officer of CHBA-CO, in a public statement. "It’s the local tradespeople — plumbers, electricians, drywallers, carpenters, framers, and roofers — who are essential to building the homes that British Columbia desperately requires. The stagnation of projects directly results in fewer jobs, reduced paychecks, and a decline in available housing. This is particularly evident in Kelowna, where unemployment rates climbed to 9.0 percent in August."
The CHBA-CO highlights that the Canada Mortgage and Housing Corporation has identified rising construction costs as a critical hurdle for builders in British Columbia. Local construction professionals have noted that the cost to build comparable homes has skyrocketed from approximately $450,000 in 2017 to nearly or exceeding $900,000 today. "An unsold property does not inherently signify greed or speculation," deVeer continued. "The federal government’s housing agency reports that construction costs have surged by 74 percent since 2019, while builders are experiencing decreased demand and an increase in unsold homes. Rather than tackling the first two challenges, the B.C. NDP’s solution appears to be imposing another tax on the third."
Since 2018, British Columbia has rolled out several tax measures aimed at curbing speculation in the housing market, including the Speculation and Vacancy Tax, an expanded foreign-buyer tax, an increased Property Transfer Tax on higher-value homes, and the introduction of the B.C. home flipping tax. DeVeer expressed concern, stating, "We have been layering taxes onto housing for years under the guise of making it more affordable. At some point, we must question whether perpetually attributing blame to speculation while neglecting the fundamental costs of construction is truly yielding the results that British Columbians were promised."

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