BC Real Estate Association Disappointed by Housing Tax Increases in 2026 Provincial Budget

Budget lacks measures to address looming decline in new home construction

VANCOUVER, BC, Feb. 18, 2026 /CNW/ - In the immediate wake of the release of BC Budget 2026, the BC Real Estate Association (BCREA) is raising concerns about budget housing measures that could exacerbate existing market issues.

In a provincial economy facing external headwinds and uncertainty, it is unsurprising that the BC Government is running a sizable deficit. However, the lack of a clear plan to return the provincial debt-to-GDP ratio to a sustainable path raises concerns about the province's fiscal health. Mounting debt and rising debt-service costs will constrain the ability to provide tax relief for BC households or fund worthwhile programs.

These realities made Budget 2026 an important inflection point, particularly for housing affordability across the province. Unfortunately, the budget failed to address either the growing tax burden or the province's housing issues. When faced with a potentially significant slowdown in new home construction, the government has opted to further burden the development sector with tax increases, imperiling the ability of the province to meet its own long-term housing supply targets.

Instead of policies to lower the cost of development, Budget 2026 doubled down on policies that have already proven ineffective at improving affordability:

• Higher school taxation rates on development lands, which will increase costs that will be downloaded to buyers and further hinder project viability. 
• Applying PST to professional housing-related services, increasing soft costs and further challenging the economic viability of projects.
• Increasing the Speculation and Vacancy Tax to four per cent for foreign residents and others at a time when BC badly needs to attract capital to increase housing supply.

These tax increases will only make an already challenging development climate more difficult.

"There is unfortunately not a lot to like from either a macroeconomic or housing perspective in this budget," says Brendon Ogmundson, BCREA Chief Economist. "We understand that the province is in a difficult position and needs to raise revenues, but doing so on the back of an already struggling housing sector will ultimately prove to be self-defeating."

About BCREA 
BCREA is the provincial association for BC REALTORS^®. As a champion for the real estate sector, BCREA advances REALTOR^® professionalism and ensures the REALTOR^® voice is heard, for the benefit of consumers and communities, across BC. By working in collaboration with the province's real estate boards and associations, our mission is to provide professional development opportunities, advocacy, economic and policy research, and standard forms so REALTORS^® are trusted, respected, and proud of their profession. 

SOURCE BC Real Estate Association

Craig Battle, Senior Marketing & Communications Specialist, BC Real Estate Association,  [email protected], 604.742.2790