On the same day that Canada officially entered into a trade war with the United States, the Government of British Columbia published Budget 2025, laying out its plans for the year(s) to come.
Rightfully so, the 2025 budget is much more focused on the economy compared to those of previous years, which have been heavily focused on addressing the housing affordability crisis. Budget 2025 includes no new significant announcement as it relates to housing and instead just builds on existing programs, which may be the right move since the Province has been accused of trying to do too much in previous years.
Here are the details.
BC Builds
Launched just over a year ago, after plenty of build up, BC Builds is now arguably the Province's flagship program when it comes to housing development. The program identifies excess land owned by the various levels of government, makes them available for housing development, and then provides low-cost financing for those projects.
BC Builds was billed as $2 billion program, but the program launched with only $198 million over three years — $150 million for operating funding plus $48 million in capital funding — via Budget 2024.
With Budget 2025, the Province is injecting BC Builds with an additional $318 million over the next three years. According to financial breakdowns, that total consists of $120 million for 2025-2026, $95 million for 2026-2027, and $103 million for 2027-2028.
According to the Province, there are currently 17 projects with a total of 1,400 units now underway as part of the program, in communities across British Columbia. (Bookmark our BC Builds Tracker to keep up with all existing and future projects.)
The Rental Assistance Program
Established in 2006, the Rental Assistance Program (RAP) provides low-to-moderate income families with assistance making their monthly rent payments via financial supplements.
To be eligible for the RAP, families must have a before-tax household income threshold of $40,000 or less and have at least one dependent child.
With Budget 2025, the Province will be increasing this income threshold to $60,000, expanding eligibility to many more British Columbians. The Province says this change will result in the number of families receiving rental supplements from around 3,200 to nearly 6,000.
Additionally, the Province says the supplements themselves will be increased, with the average amount increasing by nearly 75% from around $400 a month to $700 a month.
Shelter Aid For Elderly Renters
The Province will also be making similar changes to the Shelter Aid For Elderly Renters (SAFER) program, the rental assistance program for seniors aged 60 or over.
Last year, the Province increased the income threshold for the program from $33,000 to $37,240. With Budget 2025, the Province will be further increasing the income threshold to $40,000, a change that is projected to benefit an additional 1,600 seniors.
Like the RAP, the supplements themselves will also be increased, with the average amount increasing by nearly 30% from $261 a month to $337 a month.
Financial breakdowns indicate that the changes to the RAP and SAFER will cost a total of $375 million, with $75 million allocated for 2025-2026 before then doubling to $150 million for 2026-2027 and 2027-2028.
FInancing breakdowns for some measures towards reducing costs for families. / Government of British Columbia
Homeless Encampment Action
Through Budget 2025, the Province has also allocated additional funding towards BC Housing's Homeless Encampment Action Response Team (HEART) and the Homeless Encampment Action Response Temporary Housing (HEARTH) program.
The HEART and HEARTH programs work with local governments, First Nations, non-profits, and healthcare providers to provide those living outdoors and /or in encampments with access to supportive services and shelter options.
After providing $80 million via Budget 2023, the program has partnered with 10 municipalities to open 10 HEARTH sites with a total of 611 temporary supportive housing units or shelter beds.
With Budget 2025, the Province has allocated an additional $90 million over the next three years — $30 million each year — to continue expanding these programs. "Funding will support community-based wrap-around supports, including leveraging village-like housing as alternatives to encampments," said the Province. The new funding comes in light of Vancouver Mayor Ken Sim's controversial motion to pause new supportive housing projects until other governments do more to address the issue.
The Speculation and Vacancy Tax
Introduced in 2018, the Speculation and Vacancy Tax (SVT) was designed to crack down on the speculation by foreign owners and bring vacant homes into the housing market by levying a tax based on the owner's tax residency.
When the tax was first introduced, the rate was 0.5% on the property's assessed value for all properties that are subject to the tax.
Since 2019, the rate has been split between 0.5% for Canadian citizens or permanent residents who are not "untaxed worldwide earners" — the Province's term for an individual whose unreported income in Canada is greater than their reported total income in Canada — and 2% for foreign owners and untaxed worldwide earners.
With Budget 2025, the Province is raising those respective tax rates from 0.5% and 2.0% to 1.0% and 3.0%. The change is effective January 1, 2026, which means the increases will become payable in 2027, since the tax is based on the full preceding calendar year. The Province says this increase is projected to generate an additional $47 million in tax revenue for 2027-2028.
The Province's Housing Outlook
As is the case every year, the 2025 budget includes the Province's forecasts for the housing market.
The Province is forecasting home sales to increase by 13.2% in 2025 and 3.7% in 2026 as a result of interest rate cuts and federal changes to mortgages start to increase demand. Home prices are projected to increase by 2.4% in 2025 and 2.9% in 2026.
In terms of housing starts, 2024 saw a grand total of 45,828 housing starts, a decrease of 9.2% from 2023, which was a record high. The Province is projecting approximately 46,500 housing starts in 2025 and 47,800 in 2026. Beyond that, the Province is projecting an average of 49,900 starts per year over the 2027-2029 period.
Time will tell how accurate these forecasts are.
