BC’s Financial Reality: What’s Happening and How You Can Get Support

Many people in BC are feeling the financial pressure right now—and you’re far from alone. Rising debt, higher living costs, and slower economic activity are making it harder for households to stay ahead.

In this article, Greg Best, one of our Licensed Insolvency Trustees, shares what he’s seeing every day as he works with individuals and families across the province. Greg breaks down the economic trends in simple, practical terms so you can understand why things feel so challenging right now—and why it’s not a personal failure if you’re struggling.

Most importantly, this insight is meant to remind you that support is available, and taking the first step toward help is easier than you may think.

BC in 2025: A Year of Strain and What 2026 May Bring

2025 has been a year of contradictions in British Columbia. Our population continues to grow, the province remains one of the most desirable places in the world to live, and yet its economic foundations are showing clear signs of strain.

Insolvencies are rising, construction has stalled, capital is leaving, and many households and businesses are running out of room to maneuver.

As a Licensed Insolvency Trustee, I see these pressures play out in real time. And if 2025 was the year the cracks became visible, 2026 may be the year they widen.

Insolvencies Are Rising Faster in BC Than Anywhere Else in Canada

According to the Office of the Superintendent of Bankruptcy (OSB), insolvencies in British Columbia increased 8% year-over-year, compared to a national increase of just 1.7%. Ontario saw a 2% rise. Alberta, notably, saw a decline.

BC stands out—and not in a good way.

The drivers are clear:

• Record household debt (Canadian consumer debt has now exceeded $2.4 trillion; per-capita debt loads are among the highest in the world).
• Housing costs absorbing disproportionate shares of income, even as prices soften.
• Persistently weak productivity, which the Bank of Canada and OECD have repeatedly flagged as a structural drag on growth.
• Sectors that historically fueled BC’s economy—construction, development, and small business—are under real pressure.

Zero Land Value Is No Longer Theoretical

For the first time in decades, we are seeing residual land value collapse across parts of BC. When construction costs, municipal charges, labour shortages, and financing costs exceed achievable revenues, land loses its development value.

This doesn’t mean “land is worthless”—but it means the premium that once justified acquisitions is no longer supported by the math.

The consequences are serious:

• New construction starts are falling, particularly in multi-family housing.
• Projects are stalled, shelved, or being handed back to lenders.
• Housing supply targets become harder to meet, regardless of policy ambition.
• Credit risk increases, because lenders are reluctant to refinance land that no longer pencils out.

Without development activity, BC loses one of its most important economic engines.

Canada’s Lending Environment Isn’t Helping

Canada’s banking sector is highly concentrated. With limited competitive pressure, risk appetite has narrowed, and banks have stepped away from sectors critical to economic growth:

• Development
• Construction
• Early-stage business expansion
• Specialized manufacturing and export-oriented industries

Capital is mobile—and some of it is indeed leaving the country for jurisdictions with clearer returns and lower regulatory friction.  When capital leaves, productivity doesn’t just stagnate. It declines.

Immigration, Debt, and Sensitivity: A Real Trend That Needs Nuance

Canada continues to welcome high numbers of newcomers, and immigration remains essential to our long-term demographics and workforce.

I am also seeing a growing number of new Canadians carrying substantial unsecured debt loads—often driven by underemployment, the high cost of living, limited access to affordable credit, and financial obligations to family abroad. Increasingly, another factor is emerging: many newcomers arrive with little exposure to Canada’s credit, banking, taxation, and debt system, and there are very few accessible resources to bridge that gap.

This isn’t about blame; it’s about vulnerability. A more structured approach to financial education—potentially even revisiting what is included in the citizenship process—could help newcomers build stability from day one.

The data is still developing, and we must be careful not to generalize, but these pressures suggest newcomer insolvency filings may continue to rise. Our system must remain accessible, culturally sensitive, and genuinely supportive.

What Does This All Mean for 2026?

Unless conditions change, 2026 may be defined by:

1. Higher insolvency volumes

BC likely leads the country again. Consumer stress, business closures, and stalled development activity point toward continued upward pressure.

2. Prolonged construction stagnation

Zero land value and expensive capital mean fewer new homes, despite soaring demand.

3. Productivity challenges deepening

When businesses hesitate to invest, productivity declines further—constraining wages and growth.

4. Recovery that depends on policy clarity, not optimism

To stabilize the system, BC needs:

• More predictable regulatory environments
• Faster permitting
• Competitive financing options
• A serious national strategy on productivity, innovation, and capital formation

Hope is not a plan. Math always wins.

Closing Thought

Despite the pressures, I remain optimistic about the resilience of people, families, and businesses in this province. But we need to take the warning signs seriously. The sooner we address the structural issues—debt, productivity, competitiveness, and affordability—the sooner BC can return to a position of strength.

If 2025 showed us how fragile things are, 2026 will show us how willing we are to adapt.

As Greg has highlighted, many of the financial pressures we’re seeing in BC right now are the result of larger economic forces—not personal shortcomings. If rising debt, higher costs, or reduced income have made it difficult to stay on track, you’re experiencing the same challenges as thousands of British Columbians.

What matters most is knowing that you don’t have to navigate this alone. Our team is here to answer your questions, walk you through your options, and help you understand the practical steps toward relief—whether that involves a consumer proposal, bankruptcy, a referral to another professional, or guidance to move forward without a formal insolvency solution.

If you’re feeling overwhelmed or unsure of your next move, reaching out for a free consultation is a strong first step. Support is available, and a clearer financial future is absolutely possible.