![\"\"](\"https:\/\/www.livabl.com\/articles\/wp-content\/uploads\/2022\/02\/utkarsh-singhmar-McFjdhe9d4E-unsplash.jpg\")
<\/a>Photo: Utkarsh Singhmar<\/a> \/ Unsplash<\/a><\/em><\/p>\nProponents of vacancy taxes argue that they can increase housing supply and affordability while reducing speculation.<\/p>\n
In Vancouver, it seems that they\u2019re also helping to reduce the amount of empty dwellings.<\/p>\n
While it\u2019s hard to pinpoint exactly how many homes are sitting vacant at any given time, census data provides the total number of housing units and the total number of homes occupied by \u2018usual residents.\u2019 Vacant homes and short-term rentals make up the difference between those two numbers.<\/p>\n\n
According to the most recent census data, Vancouver\u2019s percentage of homes that aren\u2019t occupied by usual residents dropped from 8.2 per cent in 2016 (25,502) to seven per cent last year (23,011). That marks the first decline in two decades, and Vancouver\u2019s Empty Homes Tax (EHT) is being credited as a primary influence.<\/p>\n
Introduced in 2017, Vancouver\u2019s one per cent tax on empty dwellings \u2014 properties unoccupied for six months of the year \u2014 was implemented to encourage real estate investors to transition their properties to long-term rentals rather than having them sit unused.<\/p>\n
Although industry experts are divided on how much vacancy taxes contribute to increased housing supply, a\u00a0report<\/a> by the City of Vancouver found the number of\u00a0vacant\u00a0homes dropped from approximately 2,200 to 1,600 between 2017 and 2020 after the tax was introduced.<\/p>\n Meanwhile, Vancouver\u2019s EHT generated $33.6 million in revenue in 2018, $23.3 million in 2019, $27.9 million in 2020, and $20.8 million as of December 2021, helping to fund affordable housing initiatives in the city.<\/p>\n After staring out at one per cent, the tax was increased to 1.25 per cent in 2019 and more than doubled to three per cent last year.<\/p>\n