Builders can’t meet a sharp upswing in multi-residential construction demand tied to increased provincial investment, says the head of the BC Construction Association.

Premier David Eby’s government plans to fund $2 billion in low-interest construction loans and invest $950 million in rental-housing projects under the BC Builds program. The province formally committed to BC Builds by allocating the funds in its budget.

“We are very concerned that the ongoing absence of prompt payment legislation cripples B.C.’s construction industry, making it very difficult for us to help deliver the ambitious projects championed by the Eby government,” said BCCA President Chris Atchison in a statement after the budget was unveiled.

The BCCA contends that the B.C. investment would improve affordable housing for B.C. residents, But it is “unrealistic” to think that B.C.’s construction industry can meet the multi-unit build targets while enduring rising material costs, “onerous” payment delays and severe workforce shortages.

In wake of the B.C. funding, the federal government agreed to provide $2 billion in financing under its Apartment Construction Loan program for BC Builds projects.

The BC Builds program aims to construct 8,000 to 10,000 new homes for the middle class. The federal funding, combined with the provincial investment, is designed to facilitate the low-cost loans and fast-track construction on government, non-profit, and community-owned land.

Pictured: BCCA President Chris Atchison

Photo: Pace Group/BCCA