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Carney and Eby announce $3.2B developer subsidy; plan to buy unsold B.C. condos (web.archive.org)

submitted 13 hours ago* (last edited 12 hours ago) by No_Eponym@lemmy.ca to c/britishcolumbia@lemmy.ca

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Through Build Canada Homes and BC Housing, the senior governments will "convert more than 2,200 vacant condo units in priority growth areas into affordable homes," the Prime Minister's Office said in a statement.

So, they are going to buy more than half of the current absorbed condo market in the Vancouver CMA?! Average cost of these unabsorbed condos is $2.2M. That's a 4.48 billion dollar bailout to developers, or double the cost of the new skytrain routes! All paid for with YOUR taxes. This is insane!

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[–] iocase@lemmy.zip 2 points 11 hours ago* (last edited 1 hour ago)

Maybe you misunderstand what I meant by my comment. Im not supporting bailouts for developers or homeowners... Let them fail.

My concern is how something like a quarter of our GDP is involved in real estate development or speculation. Vancouver is overvalued by a factor of 3X as well, so prices would need to drop for more than a decade to slowly bring those prices back down to being affordable without subletting your single family home into a triple family home to afford the mortgage or causing complete chaos in the property market.

It's financially irresponsible to do anything productive with your money like own a business or invest locally... You buy real estate or invest in the US stock market. It's hollowed out our economy to just speculation since that's the most profitable... Every coffee shop, bar, bistro .etc that you like was financially irresponsible to spend money on. The owner would have made more money and profited more from spending that on NVIDIA or an apartment building.

What happens when prices continuously go down for an economy built entirely on prices being high and going up forever? I can't even speculate on all of the ways shit breaks when that happens.