Real estate experts say the B.C. government started to build a strong foundation for more affordable housing in Tuesday91裸聊视频檚 budget, but opinion varies on the expected outcomes.

Finance Minister Carole James is trying to ease the province91裸聊视频檚 housing crisis by introducing a new tax on property speculators, expanding and increasing a tax on foreign homebuyers and spending $6 billion to build affordable housing over the next decade.

James said she expects to see property values start to drop as her budget measures kick in.

91裸聊视频淲e91裸聊视频檙e an amazing province,91裸聊视频� she said Wednesday after speaking to the Greater Victoria Chamber of Commerce. 91裸聊视频淭here91裸聊视频檚 no question people are going to want to live in B.C. But we need to see a moderation and my hope is, by addressing both supply and demand, you91裸聊视频檒l see more supply in the market that will ease some of the cost pressures and you91裸聊视频檒l see a moderation.91裸聊视频�

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Cameron Muir, chief economist at the Real Estate Board of B.C., said plans to help build 114,000 affordable housing units will offer much needed supply for rental and low-income properties.

But he said a tremendous undersupply of available homes in Metro Vancouver, Victoria and Kelowna, coupled with B.C.91裸聊视频檚 strong economy, will keep home prices from dropping.

91裸聊视频淚n terms of market impacts, it may be great to raise tax revenue, but this is not going to have a demonstrable impact on housing markets,91裸聊视频� said Muir. 91裸聊视频淭he chief culprit of rising home prices is the inability to supply the housing market in a timely fashion.91裸聊视频�

Tom Davidoff of the University of British Columbia91裸聊视频檚 Sauder school of business said he hopes the speculation tax will help make the lower end of the market more affordable, particularly for condos.

The levy will be introduced this fall, targeting foreign and domestic homeowners who do not pay income tax in B.C., including those who leave homes vacant.

In the 2018 tax year, the rate will be $5 per $1,000 of a property91裸聊视频檚 assessed value. Next year, the rate will rise to $20 per $1,000 of assessed value. It will initially apply to Metro Vancouver, the Fraser Valley, the Victoria area, the Nanaimo Regional District, Kelowna and West Kelowna.

A non-refundable income tax credit will also be introduced to offset the new levy, providing relief for people who do not qualify for an exemption but who pay income taxes in B.C.

The tax makes a lot of economic sense, Davidoff said, because B.C. has high income and sales taxes but low property taxes, which encourages vacationers to buy property and makes life more expensive for workers.

91裸聊视频淭hat is the worst possible idea in a market like Vancouver where you have a tremendous amenity level and it91裸聊视频檚 so hard to build,91裸聊视频� he said. 91裸聊视频淲e91裸聊视频檙e such a draw for people who don91裸聊视频檛 want to work here, but do want a lovely vacation home.91裸聊视频�

People who are affected by the new levy might sell their properties, freeing up housing for locals, he said.

One issue the budget didn91裸聊视频檛 directly address is zoning, Davidoff said, adding that the taxes on speculation and foreign buyers might provide some indirect help because they will 91裸聊视频渂ash91裸聊视频� the high end of the real estate market. That encourages people to push for changes in zoning density to keep their property values up, he explained.

91裸聊视频淭he property they own is going to be worth a lot less than it was before this tax. When you have new zoning, there91裸聊视频檚 a trade off 91裸聊视频� your property becomes more valuable because you can put greater density on it, but you don91裸聊视频檛 like what91裸聊视频檚 happening to your neighbourhood,91裸聊视频� Davidoff said.

He said the changes make it more attractive for people to subdivide a single luxury property into five or six moderately priced properties.

- With files from Gemma Karstens-Smith in Vancouver.

Dirk Meissner, The Canadian Press