What the B.C. government's budget provides for housing and safety | Daily Hive

What the B.C. government's new budget provides for housing and public safety

Premier David Eby and BC Minister of Housing Ravi Kahlon. (Government of BC)

Austerity is the theme of the Government of British Columbia’s new budget for the 2025/2026 fiscal year, with very few major surprises and splashy announcements on new initiatives.

This also goes for the provincial government’s approach for addressing the housing affordability and supply crisis, with the 2025 budget focusing on maintaining existing programs and initiatives.

The conservative budget is due to a record high annual budget deficit reaching $10.9 billion for 2025/2026, soaring provincial debt, and the need to remain nimble and provide a budgetary buffer to respond to the serious economic and fiscal impacts expected from the U.S. tariffs on Canadian goods.

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When it comes to supporting the creation of new housing supply, the 2025 budget provides the existing B.C. Builds program with a funding infusion of an additional $318 million over three years.

B.C. Builds provides low-cost loans and direct non-repayable funding for affordable rental housing projects catered to middle-income households. This program was launched in early 2024, backed by an original pool of $3 billion from the provincial government and $2 billion from the federal government.

In terms of direct provincial funding supporting specific new housing projects, some of the provincial government’s largest contributions continue to be previously announced projects, such as $221 million toward 328 units of affordable rental housing at the Woodland Park redevelopment in Port Coquitlam in partnership with developer Edgar Development, with the units expected to reach completion in 2026.

As previously announced, the provincial government is also providing $300 million toward the $560 million project of building the new 1,500-bed Lower Mall student residence at the University of British Columbia’s Vancouver campus. It will reach completion in 2029.

According to the budget, capital spending on new and improved schools, post-secondary facilities, housing, health care facilities, highways, bridges, and other taxpayer-supported infrastructure will reach $45.9 billion over the next three fiscal years through 2027/2028.

Intervening in housing demand

Regarding interventionist policies, the rates for B.C.’s Speculation and Vacancy Tax (SVT) will be increased starting Jan. 1, 2026. The rate for Canadian citizens and permanent residents who are not untaxed worldwide earners will increase from 0.5 per cent to one per cent.

As well, the SVT’s rate for foreign owners and untaxed worldwide earners will go up from two per cent to three per cent.

In terms of housing market trends, the provincial government now forecasts overall home sales will increase by 13.2 per cent in 2025 and 3.7 per cent in 2026, driven by the Bank of Canada’s sustained interest rate cuts and recent federal mortgage rules. The average home sale price will go up by 2.4 per cent in 2025 and 2.9 per cent in 2026.

Total housing starts in B.C. will total 46,500 units in 2025 and 47,800 units in 2026, which is below the record high experienced in 2023 but above the 10-year historical average. Annual housing start totals will further increase to an average of 49,900 units per year between 2027 and 2029.

“Over the medium-term, lower population and immigration are expected to soften the labour market, lowering employment growth, while the unemployment rate is expected to decrease as labour force growth slows,” reads the provincial budget.

“Consumer spending is projected to improve going forward as interest rates continue to trend down. Residential construction is forecast to remain robust, supported by recent government housing policies, while home sales activity is expected to strengthen in response to interest rate cuts and increasing demand.”

Public safety

Another interventionist strategy is $375 million in new funding over three years to enhance and expand access to rental supplements for lower income families and seniors, with the changes expected to nearly double the number of families receiving supports from 3,200 to nearly 6,000 families. About 25,000 seniors, on average, will see a nearly 30 per cent increase to their monthly supports.

When it comes to intervening in public safety in communities, the provincial government will provide $235 million over three years to support new community safety initiatives, including programs to address repeat violent offenders, improve intervention services, and connect people to the supports and treatment they need.

In particular, the 2025 budget launches the new Community Safety and Targeted Enforcement Program to target robbery, shoplifting, theft, and property-related offenses by providing police with enhanced tools and resources to curb such crimes.

New funding totalling $325 million is also allocated for the courts, policing, body-worn cameras for police officers, virtual bail, the BC Coroners Service, and victim services, and to expand the training capacity for police recruits by 50 per cent from 192 to 288 police officers per year. This includes $90 million more for the “HEART and HEARTH” programs that provide support services for people experiencing homelessness, as well as shelter and housing options.

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