PM Mark Carney and BC Premier David Eby Unveil Plan to Buy Unsold Condos for Housing, Sparking “Bailout” Backlash

Prime Minister Mark Carney and British Columbia Premier David Eby announced the Canada–British Columbia Partnership on Condo Conversion in Vancouver’s River District, a high-profile effort to address a growing glut of unsold condominiums while expanding affordable housing supply.



The joint federal-provincial initiative targets more than 2,200 vacant condo units in priority growth areas, primarily Metro Vancouver, converting them into affordable homes through government purchase and “innovative financing tools” from Build Canada Homes and BC Housing. Details on pricing, models, and implementation are expected this fall.

The Condo Market Context

Metro Vancouver faces a significant overhang of unsold new condos — reports indicate around 4,376 units sitting empty, a sharp 76% increase from the previous year. Developers have been reluctant to lower prices to clear inventory, citing high construction costs, development charges, and a market where asking prices remain out of reach for many local buyers despite good incomes. Some projects face financial strain, with units projected to sit vacant for years without intervention.

Carney described the situation bluntly at the announcement: “Developers are stuck. They don’t want to sell at a loss.” He framed the plan as a way to “clear off on the books this overhang” by using government financing rates to make units affordable relative to incomes, while also spurring more construction overall.

Key Elements of the Plan

The condo conversion is part of a broader $3.2 billion (joint federal-provincial) housing and infrastructure package over 10 years:

• Condo purchases: Governments will acquire unsold units and convert them to affordable rental or ownership options for middle-income British Columbians “locked out” of the market.
• Development charge reductions: Up to $1.6 billion federal (matched by BC) to cut development cost charges (DCCs) by as much as 50% or $40,000 per unit in priority areas, aimed at lowering costs passed on to buyers and encouraging new builds.
• Infrastructure support: Funding for water, wastewater, roads, and transit projects to enable growth.
• Broader federal commitment: Over $5 billion in infrastructure investments across BC.

Officials positioned the moves as pragmatic solutions to boost housing supply quickly and “unfreeze” a stagnant condo sector.

Why the Controversy?

The announcement was quickly labeled a “condo bailout” or “developer subsidy” by critics across the political spectrum, social media, and housing commentators. Here’s why many view it as controversial:

• Taxpayer-funded losses for developers: Opponents argue the government is using public money to buy units at or near current (high) market prices, effectively absorbing the financial hit that developers and investors would otherwise take by selling at a loss. Conservative Leader Pierre Poilievre stated: “The condo goes from expensive to less expensive. Who’s going to pay the difference? Well, Mark Carney wants you, the taxpayer... to pay those losses instead of the developers.”
• Moral hazard concerns: Prominent investor Marc Cohodes (known for calling the 2008 U.S. subprime crisis) called it “moral hazard on steroids” and potentially worse than 2008 in some respects. He argued that by preventing market-clearing price drops (which could make homes more affordable for locals), the plan rewards risky overbuilding and speculation while socializing losses onto taxpayers. Allowing brutal discounts, he suggested, would let genuine buyers access homes tied to local incomes.
• Doesn’t fix affordability long-term: Urban planner Andy Yan questioned intervening to set a price floor rather than letting market mechanisms work. Critics say propping up prices benefits developers and existing owners more than new buyers, while failing to address root issues like zoning, construction costs, or foreign capital influences in past Vancouver markets.
• Transparency and process questions: With Parliament on summer break, some raised concerns about approval processes, exact costs (still being modeled), and who ultimately benefits. Details on purchase prices and financing structures remain pending.
• “Privatize profits, socialize losses” narrative: Social media and opposition voices framed it as corporate welfare for condo developers (some with ties to past high-profile projects), while everyday Canadians struggle with high housing costs, mortgages, and living expenses.

Supporters counter that the plan adds housing supply faster than new construction alone, converts empty units into productive use, reduces barriers for future building, and targets genuine affordability gaps — all without waiting for a full market crash.

What’s Next?

Full program models and costs are slated for release in the fall of 2026. The initiative forms part of the Carney government’s broader housing push, alongside other infrastructure and supply measures.

Whether the condo conversion ultimately helps affordability or primarily shields developers from market discipline remains hotly debated. As one critic put it, the core question is whether government should step in to prevent losses in the housing sector or allow prices to adjust to what local incomes can sustainably support.