March 11, 2025

The BC Government tabled Budget 2025 on March 4, offering little to support market housing supply while introducing new tax increases that will add further pressure to an already struggling sector. Instead of addressing the structural challenges limiting housing delivery, the government has focused on expanding previously announced programs and raising taxes on property ownership. 

From a fiscal perspective, the government’s financial position has deteriorated dramatically. In November 2022, Premier Eby inherited a projected $5.7 billion surplus—yet this budget forecasts a $10.9 billion deficit for the coming year. This alarming swing comes before factoring in the economic consequences of the escalating trade dispute with the United States. These numbers raise serious concerns about the province’s fiscal management and its ability to support economic growth. 

Key Takeaways: 

• No Changes to Bare Trusts: A key positive is that the budget does not include any mention of ending the use of bare trusts in real estate transactions—an issue that UDI, its members, and the Greater Vancouver Board of Trade strongly raised with Minister Bailey in the lead-up to today’s announcement. However, this remains an area to monitor closely. 
• Minimal Action on Housing Supply: The budget does little to address BC’s worsening housing crisis. Aside from an additional $318 million over three years for BC Builds, a program intended to accelerate housing development for middle-income earners, there are no meaningful measures to increase overall supply. 
• Increased Speculation and Vacancy Tax: The government is raising tax rates on underutilized properties, increasing the rate from 2% to 3% for foreign owners and untaxed worldwide income owners, and from 0.5% to 1% for Canadian citizens and permanent residents. At a time when new home sales are already declining, this move will only add further uncertainty and deter much-needed investment in housing. 
• Expanded Rental Assistance Without Supply Solutions: The province is increasing rental assistance for low- and moderate-income families and seniors by raising eligibility thresholds and boosting monthly supplements. While this provides some relief for renters, it fails to address the fundamental issue: without new supply, affordability will continue to worsen. 
• Investment in School Infrastructure: Capital investments of $4.6 billion over three years will go toward building, renovating and seismically upgrading schools. Major projects include $392 million in prefabricated school projects that will create 6,485 new seats across 16 school districts; $203 million for the new 1,900-seat Smith Secondary school in Langley; and $151 million for the new 630-seat Olympic Village elementary school in Vancouver. 

Budget 2025 offers no meaningful solutions to BC’s growing housing crisis and instead introduces new tax burdens that will make housing delivery even more challenging. Despite a worsening economic outlook, the government has prioritized taxation over policies that would encourage investment and development. UDI will continue to push for practical solutions that enable much-needed housing supply.