B.C. developers and housing non-profits unite to press for lower construction costs ahead of election

Private developers and non-profit housing organizations in British Columbia have joined forces ahead of the provincial election, warning that rising costs are preventing homes from being built across a wide range of price points. In a rare joint appeal yesterday, the Urban Development Institute (UDI), B.C. Non-Profit Housing Association, Aboriginal Housing Management Association and Co-operative Housing Federation of B.C. urged every provincial party to commit to four measures to get housing projects moving and preserve existing affordable rentals. The groups say their members face many of the same expenses despite serving different housing needs: land acquisition, construction and borrowing costs, government development levies and fees, and financing costs caused by permitting delays. Uncertainty about funding and government requirements is making projects harder to advance. UDI CEO Mike Drummond said developers and non-profit housing providers asking for the same things should show parties how serious the cost-of-delivery crisis is.

The groups’ first request is to restore previously planned funding for non-profit, co-operative and Indigenous housing. They say the 2026 provincial budget withdrew $1.4 billion from planned affordable-housing investments, delaying more than 5,000 affordable rental homes without a replacement funding schedule. Some projects had already identified sites and spent money on designs and approvals. The BC NDP-led government describes the change as a reallocation of nearly $1.4 billion over its three-year fiscal plan. More than $900 million is being redirected to housing programs and services, including support for non-profit operators, assisted living and below-market homes through a partnership with the Musqueam, Squamish and Tsleil-Waututh Nations.

Premier David Eby’s government made the policy shift earlier this year amid forecasts of substantial annual deficits for years to come and mounting provincial debt. Years of elevated capital spending are a major driver. The BC NDP decided to delay some planned capital spending on new affordable housing, hospitals and infrastructure to narrow the deficit and slow debt growth, including the government’s annual interest payments. The organizations say the pivot has cost non-profits, co-operatives and their private development partners $45 million in work undertaken before construction, while other projects have been shelved. Jill Atkey, CEO of the B.C. Non-Profit Housing Association, said projects are ready but land is sitting empty, and people waiting for affordable housing cannot wait another budget cycle. She said the next government has an opportunity to restore the investment and build the homes.

The second request is for the next provincial government to secure federal GST relief on new homes for all buyers, not only first-time purchasers. A federal-provincial agreement announced for Ontario in March 2026 extended sales-tax rebates to eligible buyers beyond first-time purchasers. The temporary measure provides full relief from Ontario’s 13 per cent HST on homes priced up to $1 million, with rebates also available for higher-priced homes. It applies to eligible purchase agreements signed between April 2026 and March 2027.

B.C. pursued a different partnership approach with Prime Minister Mark Carney. Daily Hive Urbanized previously reported that in June 2026, Eby said the federal government had offered about $300 million for housing measures, with Ontario-style GST relief initially on the table. Eby’s government instead proposed using roughly half the federal funding, matched by provincial money, to help buy unsold strata condominium homes for an affordable rent-to-own program with no down payment. The federal-provincial partnership announced that month envisioned converting more than 2,200 vacant newly built condominium units into affordable homes. Months later, Eby appears to have backed away from that controversial strategy: the BC NDP’s provincial election platform now calls for a new tax on developers and their unsold newly built condominium homes.

The June 2026 announcement by Eby and Carney also included a commitment to lower development charges. The federal and B.C. governments announced up to $3.2 billion in combined funding over 10 years for infrastructure supporting new housing, along with development-fee reductions of up to 50 per cent for multi-unit housing in priority areas. The four organizations are urging both governments to finalize the agreement so developers can account for lower fees in their project pro formas. Development cost charges help fund the infrastructure and utilities needed to serve growth. The groups say the agreement’s details remained unresolved when the snap provincial election was called, leaving developers unable to budget for potential savings and municipalities unable to implement the changes.

The organizations also want governments to protect the affordability of existing rental homes. They are calling for B.C.’s remaining Rental Protection Fund money to be invested alongside the Canada Rental Protection Fund, saying a combined pool could preserve more affordable rentals and provide greater stability for tenants.

B.C.’s provincial election day is scheduled for Saturday, Oct. 24, 2026. The six-day advance-voting period runs from Friday, Oct. 16, to Wednesday, Oct. 21. Voters will elect an MLA for their riding, helping determine which provincial party forms government. Separately, municipal election day across B.C. is Saturday, Oct. 17, when voters will choose mayors, city councillors, school board trustees and other municipal representatives.