The housing market in Ottawa could be subject to drastic change with the proposed tax on vacant homes. Enacting this tax will essentially make builders and homeowners pay a 1% tax on any vacant properties for over 184 days a year. This tax wouldn’t apply to the owner’s primary residence but rather to buildings that are income-generating properties.
This tax was formed to boost the city’s rental housing market and has been given the green light by Ottawa’s finance and economic development committee on Tuesday, June 1st. It was considered further during the full council meeting on June 9th.
This tax will then be developed further for implementation in 2022 and will be billed starting in 2023, giving builders and homeowners ample time to fill their vacant properties.
This proposed tax will bring an influx of approximately $6.6 million in additional revenue in the first year alone. However, it is not designed to be a financial windfall for the city; instead, it aims to boost the city’s inventory of rental units and reduce vacant homes in a state of utter disrepair.
This tax was created in response to the growing vacancy rate in the city, with it being raised slightly to 1.8% in 2019 than the previous year and surged to 3.9% in 2020. This was because of the thousands of new apartments flooding the market. Additionally, students who customarily populated the city left due to online classes and borders closing. Even though the number of people occupying apartment units decreased, the overall rent still rose by 4.5%.
These upcoming changes could drastically affect the look of the Ottawa housing market. We are excited to see the positive changes in the quality of homes populating this city.
Whether you are looking to buy or sell property in the Greater Ottawa Area, it is critical that you have a real estate agent on your side who understands your needs. Adam Mills and his team have been in business for over ten years and have a proven track record for success. Our team is composed of knowledgeable and experienced professionals who are happy to help you navigate the ever-changing Ottawa real estate market. Please contact us at 613-825-7653 or email us at email@example.com for more information or help with your relocation.