Re: The homebuilding crisis in British Columbia

Dear Premier Eby and Minister Boyle,

Supply-Build Canada is an association that represents Canada’s building materials industry. We have over 1,300 member firms across Canada, including 211 member firms based in BC. Our industry contributes $53.1 billion into Canada’s GDP which ranks third in industry GDP contributors, and supports more than 561,585 jobs, BC accounts for $9.3 billion and over 96,000 thousand jobs.[i] Our industry is a strong advocate, supporter, and contributor to “buy Canadian” and “buy BC” policies as our members manufacture, distribute, buy, and sell Canadian and British Columbian made building materials. These building materials are important to the home-building industry in BC.

Supply-Build Canada and the Government of British Columbia share common goals to increase BC’s housing supply and improve housing affordability. We appreciate the Government of British Columbia’s ongoing efforts to achieve these goals by implementing Local Government Housing Initiatives which include providing funds for the Local Government Development Approvals Program to help municipalities accelerate residential development processes; and establishing a deferral program for development cost charges (DDCs).

However, our industry leaders in BC have expressed concerns regarding the current cost of development fees which has made homebuilding unaffordable for developers. For instance, it is estimated that high development cost charges (DDCs), especially in Metro Vancouver, are part of the reason the province has seen slower housing start growth. DDCs are scheduled for a 3-year increase from 2025 to 2027 which will increase DDCs in Metro Vancouver more than 200%. For example, DDCs for a Vancouver townhouse dwelling unit will grow from $8,679 to $30,861 (an increase of 225.5%), and DDCs for a North Shore townhouse dwelling unit will increase from $8,482 to $30,113 (an increase of 255.1%).[ii] This has priced out families from pre-purchasing residential units, therefore deterring developers from building.

From 2024 to 2025 housing starts in BC have fallen by 4.7% -one of only three provinces that saw reduced growth.[iii] If this trend continues layoffs will occur in the home building industry (i.e., trades and building materials jobs), residential units will not be built, municipal revenue from these costs will be reduced which will negatively impact operating budgets; and housing unaffordability will continue to rise. As a result, developers have already reduced their building material orders which has adversely affected the building materials industry nationwide.

By encouraging municipalities in BC to lower (not eliminate) these costs the Government of British Columbia can rejuvenate the homebuilding industry, and assist municipalities meet their housing targets.

We welcome the opportunity to meet with you to discuss further.

Thank you.

Sincerely,

Liz Kovach
President

Supply-Build Canada

Footnotes:

[1] Numbers derived from Statistics Canada, Table: 36-10-0480-01.

[2] Homebuilders Association Vancouver, “We’re Going Up, Up, Up…”, Homebuilders Association Vancouver 26, no.03, January 19, 2026.

[3] Bryan Yu, “Bryan Yu: B.C. housing market is weaker than the numbers suggest”, Business Intelligence for B.C., January 28, 2026.

BC Response to Supply-Build Canada Letter on Development Charges

Dear Jay Dion:

Thank you for your correspondence of February 9, 2026, regarding your position on high development charges and construction fees in British Columbia. I apologize for the delay in responding.

The Province of British Columbia has established a legislative framework for local governments that recognizes they are in the strongest position to weigh the needs of the community and to make informed decisions for the benefit of its citizens while maintaining provincial interests. The system depends on the ability of your locally elected representatives to balance their vision for the community with the concerns expressed by the people and organizations that are affected by their decisions.

Your concerns are certainly noted, and I recommend that members of Supply-Build Canada directly engage with the Union of British Columbia Municipalities who act on behalf of the entire local government membership in British Columbia to ensure that your concerns are heard.

Costs of construction have increased for all those wishing to build, including local governments that provide core services. The Province recognizes developers and local government concerns about increased service and infrastructure costs. However, meeting British Columbia’s housing needs takes strong partnerships, and ensuring people have access to safe, affordable housing in communities with reliable services is crucial to creating more livable communities. Local governments in British Columbia have the authority to adopt development cost charge (DCC) programs that support the future housing supply growth needs in their communities. DCCs help local governments build infrastructure to serve their growing communities

Local governments can waive or reduce DCCs for affordable rental housing. However, any shift of costs for core infrastructure away from the developers must be recovered from the rest of the community, usually through property taxes. The existing community is already contributing to the cost of renewing and maintaining existing infrastructure that serves them. You may already be aware, however, that at an April 2026 Board meeting Metro Vancouver voted to reduce the existing DCCs rates and remove the planned increase for 2027.

The Province is taking steps to ease the impact of development charges on the development sector. Last year, the Province updated the Development Cost Charge and Amenity Cost Charge (Instalments) regulation to provide the housing development industry with more flexibility in how they finance and build new housing. Starting in January 2026, developers can delay their final development charge payment until the occupancy permit is issued or within four years, whichever comes first. School site acquisition charges were added to those that may be paid by instalments. Qualifying developers also have the option to use on-demand surety bonds instead of locking up working capital with bank guarantees. Together, these changes can save millions on carrying costs for large projects.

Thank you again for taking the time to write.

Sincerely,

Christine Boyle
Minister of Housing and Municipal Affairs