**Vancouver Faces Surge of Unsold Condos Amid Market Concerns** Executives in Vancouver's real estate sector are raising alarms about a significant number of newly constructed condominiums that remain unsold and unoccupied. Currently, approximately 2,500 new condos are sitting empty in Metro Vancouver, according to the Canada Mortgage and Housing Corporation (CMHC). This figure has doubled compared to the previous year. Anne McMullin, president and CEO of the Urban Development Institute, attributes this situation to the rising costs of construction, which have outpaced local residents' ability to afford new homes. "Costs have escalated so much in the last 10 years that to build a unit is out of the price range of 80 percent of the public in the Metro Vancouver area," McMullin stated. Developers are reluctant to sell at a loss, as McMullin noted, saying, "You're not going to build to lose money." For years, the market absorbed increasing costs related to labor and materials, with many in the industry believing prices would continue to rise. However, McMullin also pointed to recent government policies that have further inflated building costs. "The cost that is associated with policies at all three levels of government has made it that we can no longer build what people can afford," she explained. Some developers are now returning deposits to buyers because they are failing to meet pre-sale targets necessary for securing bank financing for new projects. McMullin mentioned that some companies have even entered receivership due to the escalating prices. The condo market in Metro Vancouver is experiencing a downturn, with some developers already laying off staff. "There is a potential storm coming and it's frightening," McMullin warned. She expressed hope that local governments will reassess their policies, including those related to non-market rental housing and public art. Greg Zayadi, president of a Vancouver-based development company, noted that the market slowdown has been evident since March 2022. "But, yes, over the last year it's gotten very real," Zayadi said. He highlighted that the real estate industry had enjoyed a strong two decades, but the recent drop in new condo sales could have significant repercussions for the labor market. Zayadi remarked, "The last time we saw this level of developer-owned unsold inventory was 24 years ago." He emphasized that buyers are looking for larger spaces, stating, "People who are spending $800,000 for a condo likely don't want a 450- or 500-square-foot condo." He suggested that the industry needs to adjust to deliver inventory priced between $700 and $900 per square foot, which is $200 to $300 above current market rates. The unsold condos are primarily located in Burnaby, Coquitlam, and parts of Surrey. Oleg Galyuk, a real estate agent with Royal Pacific Realty, noted that older condos tend to sell better than new pre-sale units. He attributed the lack of buyer interest to the layouts of new homes and insufficient parking spaces. Galyuk mentioned that developers are offering various incentives to attract buyers, such as including parking stalls and storage lockers, as well as cash-back offers upon completion. He also observed that many developers have focused too heavily on attracting investors, leading to a surplus of condos that do not meet the needs of potential residents. "Right now, a lot of condos are coming online that people don't really want to live in," Galyuk concluded.