I'm going to try to clarify this article:
1) There's a key difference between 'vacant' and 'unsold' units. Vacant units can remain vacant, but this policy is about unsold inventory. Watch how media channels spin this as "vacant homes."
2) The article announces $3.2B for DCC (Development Cost Charges) subsidies and $2.5B for transit alongside buying 2,200 condos, but gives NO price for the condo purchases. The article only notes that units where the announcement was made sell for $1.1M which tracks with concerns that government may be paying full market price for unsold inventory.
3) If developers have 2,200 unsold units, why isn't the market clearing? Prices could drop 5-10% and units would sell. There's still demand, but if developers aren't budging on price, the government likely isn't getting a bulk discount either.
4) Why would government pay near-market rates (~$1M/unit?) instead of negotiating bulk discounts on distressed inventory? This smells like another 'too big to fail' broken business model.
I try to be impartial, but this smells like a giant handout to private developers spun as a housing affordability measure. No mention of who might benefit beyond the developers.
https://www.biv.com/news/carney-and-eby-announce-32b-developer-subsidy-plan-to-buy-unsold-bc-condos-12442807
#Canada #Housing #Affordability #CorporateWelfare #HousingCrisis #CdnPoli #BCPoli