Vancouver Council has voted to place a tax on empty homes as a way of easing the rental accommodation shortage in the City. The tax, one percent year of assessed value, has stunned elderly people who keep a home for seasonal use. It is the first such tax of its kind in living memory in Canada. Three councillors voted against the motion but a majority prevailed with the mayor, Gregor Robertson, an enthusiastic advocate. Council hopes that the tax will prompt more property owners to rent out their units and increase the city’s rental stock. Vancouver’s rental vacancy rate is currently 0.6 per cent.
As crazy as the tax sounds, we have to remember that Vancouver is, by far, the most expensive city to live in, in Canada. Buying a home takes it off the market, reducing supply and increasing costs for everyone.
That may be a great investment strategy, but it is a terrible burden to place on the city as a whole. Homeowners are not merely investors. They have a duty to their communities. leacing a home empty to make a quick buck as an investment vehicle is *not* being a good neighbour.