It’s a 3B$ bailout of BC developers, and even the CBC is mad about it.
B.C. is facing a glut of empty condos. Thousands of Metro Vancouver units are sitting empty and some developers are facing insolvency.
Now, some housing experts are questioning a plan by the federal and provincial governments to buy some of those vacant units and turn them into affordable housing.
They say it amounts to a multi-billion dollar bail out for developers who refuse to lower prices to reflect a sluggish real estate market.[…]
Yan has a lot of questions about the plan by Mark Carney and David Eby to spend up to $3 billion to buy vacant condos in “priority growth areas” and turn them into affordable housing.
Recent data from the Canada Mortgage and Housing Corporation shows that as of last month, there were 4,376 completed condos sitting empty in Metro Vancouver, a 76 per cent increase from the year before.
Yan has crunched the numbers, with his analysis showing that a third of all condos without owners in Metro Vancouver cost over $1 million.
He questions how deep a discount the governments can get to make those units truly affordable.
Wrong question.
