B.C. real estate and development groups are urging the incoming provincial government to revisit housing policies, including construction-cost measures and building-code requirements.
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Industry groups representing developers and real estate agents say B.C.’s incoming government should review existing housing policies to revive the province’s housing market, with a particular focus on reducing construction costs.
Michael Drummond, CEO of the Urban Development Institute (UDI), said the industry is facing a “cost of delivery crisis,” arguing that “it costs more to build than what people can afford.” He pointed to CMHC data showing Metro Vancouver’s new condo construction hit a 15-year low in the first half of 2026, citing weak presales and high construction costs.
Drummond said he wants the province to revisit policy choices from the previous NDP government that could be adding to those construction costs, including the step requirements in the BC Energy Step Code and the Zero Carbon Step Code for large buildings.
He said the province currently requires Step 2 for large buildings under the Energy Step Code, which means new construction must be about 20 per cent more energy efficient than the standard that previously applied. Drummond also urged the government to pause mandatory increases to both codes.
UDI is also calling for cancellation of the planned PST expansion to professional services and for a development charge reduction program modelled on Ontario’s recent approach, arguing that relying on demand-side measures and taxes has not built new housing.
The BC Real Estate Association (BCREA) is also asking the new government to review Step Code and home-energy policies, halt the planned PST expansion, and reconsider housing-related taxes, including the Speculation and Vacancy Tax introduced in 2018.
BCREA government relations manager Jasroop Gosal said the industry has seen a long list of housing policy changes over recent years, including Bills 44 and 47, changes to development financing, the Speculation and Vacancy Tax, the home-flipping tax, the foreign buyer tax, housing targets, and affordable housing programs.
Gosal said BCREA is calling on the new government to establish a permanent Provincial Housing Policy Roundtable to bring stakeholders together to review existing policies as a first step.
Jill Atkey, CEO of the BC Non-Profit Housing Association, said the industry is not expecting solutions right away but wants clarity within a year about the government’s direction, the tools it will use, and the level of investment planned for affordability. She said predictability would help the sector invest in pre-development, which she said is difficult when regulatory and government uncertainty is high.
UDI and BCREA leaders said the desired outcome includes movement in the housing sector, activity in development and construction, and progress in presales.
Drummond said success also means enough cost reductions to make housing affordable to build, adding that delivering a unit for the wages people earn in B.C. depends on getting “enough costs out of the system.”
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