Budget measures ensure homes are for people, not speculators
As part of Budget 2024 measures that will increase supply and make homes more affordable and accessible, the Province is taking action against speculators and those who profit from “flipping” homes.
“Families shouldn’t have to compete with house-flipping investors when they’re trying to buy a home,” said Premier David Eby. “This tax will deter speculators and give families looking for a place to live an advantage in our housing market.”
Legislation to introduce the B.C. home-flipping tax will be introduced in spring 2024. If passed, it will take effect Jan. 1, 2025. At that time, any home sold within two years of purchase will be taxed, with the revenue funding new homes. Exemptions to the home-flipping tax will be available to people who face unavoidable life changes, including death and divorce, job relocation or loss, and people who are adding to B.C.’s housing supply.
“We know that people are struggling to find homes to rent or buy in areas that are close to work and their families,” said Katrine Conroy, Minister of Finance. “We want people to know our government has your back. That’s why Budget 2024 takes further steps to deliver more housing for people faster and make sure homes are lived in.”
The flipping tax complements other measures B.C. has taken to discourage housing speculation, including a speculation and vacancy tax, which is estimated to have freed up at least 20,000 homes in Metro Vancouver alone. The Province is also investing billions in B.C. Builds to build homes for the middle class.
“For many people, housing is their number 1 concern,” said Ravi Kahlon, Minister of Housing. “We are delivering results, but we’re not done. B.C. Builds is going to deliver thousands of middle-class homes in communities people want to live in.”
In fall 2023, B.C. introduced reforms to limit short-term rentals in cities where vacancy rates are low.
“I had been looking for a new apartment — right when the timing of the new short-term rental legislation hit the media. Just a couple of days later, more than a few of the listings I was seeing online were obviously ex-AirBnbs,” said Andrew Rideout, a renter from Vancouver. “I was able to sign on one really quickly at a decent price with some really good amenities. Without the new rules, my place wouldn’t have been available and I wanted to let Premier Eby know that, at the very least, he helped me snap up a great apartment in my favourite neighbourhood.”
A backgrounder follows.