Vacant Home Tax in Peel
A possible new way to help create more affordable housing.
A vacant home tax is applied to homes that are vacant for at least 6 months over a 12-month period. A vacant home tax is a tool that can be used in cities facing challenges related to housing. The challenges can include rising home prices and limited availability of homes for sale or rent.
There are several approaches that can be explored by municipalities to address the affordability crisis they face, and a vacant home tax is one of them. As directed by Regional Council, we’re exploring the feasibility of a vacant home tax in Peel.
Share your feedback
Tell us what you think about the development of a Vacant Home Tax in Peel as a way of increasing affordable housing in your community.
How vacant home tax could work for Peel
There’s a housing affordability crisis in Ontario including Peel. Calculations show that it would take the average family 26 years to save a large enough down payment for current home prices and 51 years for a family earning minimum wage. Research and real-world experience suggest that a vacant home tax is one of many tools that can contribute to easing the affordable housing crisis in the shorter term.
By implementing this tax, Peel Region may be able to encourage owners of vacant properties to either sell or rent out their empty units. This would create more supply of available units which could lower average property sale and rent prices.
While not mandated by legislation, all municipalities that have implemented, or are considering, the vacant home tax have pledged to use collected revenues to increase housing supply and support housing initiatives:
- Rent relief programs.
- Building and maintaining affordable housing.
- Providing grants to non-profit organizations to assist the community.
We want to hear from you
We’re consulting with the public to get input to shape the development and implementation of a vacant home tax in Peel. We want to understand what you think it should accomplish, how it should be operated, and identify potential risks.
Share your opinion with us by completing a short survey.
Your input matters
Feedback from the public consultations will help us make informed decisions related to the design of the vacant home tax. Your input will provide insights into:
- The level of public support.
- Public policy implications.
- Potential effectiveness of the tax in increasing the supply of housing.
- Its impact on affordability.
- Privacy-related concerns about implementing the tax.
Public consultations are a key component in the submission to the Ontario government for approval of the Vacant Home Tax by-law.
The Region of Peel expects to report back to Council later this year on the feasibility of implementing the tax and the next steps.
Questions related to the Vacant Home Tax can be emailed to us.