opinion

B.C.'s empty-condo proposal targets a real problem with a blunt instrument

Taxing unsold units may force price cuts, but it could also discourage the next round of housing construction.

The Canadian

Opinion

September 26, 2026

5 min read

David Eby's proposal to tax newly built condos that remain empty for more than a year addresses a visible contradiction: thousands of completed homes sit unsold while many British Columbians cannot find housing they can afford.

The proposed levy would begin at two per cent of assessed value and rise for each additional year a unit remains unsold. Its theory is straightforward—make waiting out the market more expensive than cutting prices.

“Housing policy should reward occupancy without punishing the next home before it is built.”

Developers argue the tax punishes projects completed at the wrong point in the market cycle. That concern cannot be dismissed, because policies that weaken future construction could deepen the very shortage they are intended to solve.

A defensible version of the policy would need transparent exemptions, evidence that units are genuinely being withheld, and regular review of effects on prices and new starts. Housing policy should reward occupancy without making the next home harder to finance.

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