When the BC government released its budget on February 17, 2026, most of the headlines focused on short-term economic impacts. But when I read through the details, what stood out to me was something a little different. It wasn’t about what happens this month or even this year. It was about what these changes could mean for the future cost of housing in British Columbia.
To make this easier to understand, I recorded a short video explaining the changes and why they could matter for buyers and sellers over the next few years.
One of the biggest changes in the budget is the expansion of Provincial Sales Tax to certain professional services that are essential to building housing. Architectural services, engineering services, and geoscience services are now subject to PST.
That might sound technical, but these professions play a critical role in every housing development in BC. Whether a developer is building a condo building, a townhouse project, or even a new subdivision, these professionals review plans, ensure structural integrity, and confirm that projects meet safety and environmental standards. In other words, these services are not optional.
When the cost of these services increases, the overall cost of building increases as well. Developers rarely absorb those costs. Instead, they become part of the total cost of delivering a home, which ultimately gets reflected in the final price paid by the buyer.
The budget also extends PST to accounting services and other related professional services. While that may seem like a smaller detail, it adds another layer of administration and expense to an already complex development process. Housing development in British Columbia already involves significant timelines, regulatory approvals, and financial planning. Adding additional taxes and paperwork can make that process even slower and more expensive.
Another part of the budget that caught my attention involves infrastructure and housing investments. The province has indicated that it will spread these investments over a longer timeline. In practical terms, this means the funding may still exist, but the projects themselves may take longer to move forward.
Infrastructure projects such as roads, hospitals, and community services are closely connected to housing development. Without the supporting infrastructure, many residential projects cannot proceed or must be delayed. When infrastructure timelines stretch out, housing timelines often stretch out with them.
This matters because housing supply in British Columbia was already expected to slow in the coming years. Construction costs, financing costs, and regulatory timelines have already been challenges for developers. When additional costs and delays enter the equation, some projects may be postponed, redesigned, or in some cases cancelled altogether.
When housing supply slows while population growth and housing demand continue, the result is often upward pressure on prices over time. This is especially true in high-demand communities such as South Surrey and White Rock, where available land and development opportunities are already limited.
None of this means we are about to see dramatic changes overnight. Real estate markets move gradually, and policy changes often take time before their effects are fully felt. But these kinds of decisions can shape the long-term housing landscape in ways that are easy to overlook at first.
Housing affordability is often discussed in terms of interest rates and buyer demand. Those factors certainly matter. But the cost and speed of building new homes are equally important pieces of the puzzle.
The reality is that if it becomes more expensive and time-consuming to build housing, it becomes more difficult to increase supply. And when supply struggles to keep up with demand, prices tend to respond accordingly.
Right now, the market feels relatively balanced. Buyers have more options than they did a few years ago, and sellers are adjusting to a market that rewards preparation and pricing strategy. But the policies that affect how quickly and affordably new housing can be built today may influence what the market looks like several years from now.
Understanding these bigger-picture changes helps both buyers and sellers make smarter decisions. Real estate is not only about what is happening in the market today. It is also about understanding the forces that shape where the market may be headed tomorrow.
The data relating to real estate on this website comes in part from the MLS® Reciprocity program of either the Greater Vancouver REALTORS® (GVR), the Fraser Valley Real Estate Board (FVREB) or the Chilliwack and District Real Estate Board (CADREB). Real estate listings held by participating real estate firms are marked with the MLS® logo and detailed information about the listing includes the name of the listing agent. This representation is based in whole or part on data generated by either the GVR, the FVREB or the CADREB which assumes no responsibility for its accuracy. The materials contained on this page may not be reproduced without the express written consent of either the GVR, the FVREB or the CADREB.