Vacant Unit Tax unlocked housing supply worth $400M in capital: City report
AI Article Summary
The City of Ottawa's Vacant Unit Tax (VUT) policy has revealed that returning 1,602 previously vacant units to the housing market equates to a $400 million capital investment, which would otherwise be needed for new construction. The program generated $14.3 million in 2023, with funds allocated to affordable housing projects, yet 2,067 properties remain persistently vacant. To address these resistant vacancies, a graduated tax rate has been introduced to encourage occupancy. The city also increased audits by 40% in 2023 to identify undeclared vacancies.
What This Means for Canadian Contractors
For Canadian builders, this policy shows the potential for reallocating existing housing stock to meet demand without new construction. It highlights the importance of adaptive reuse and can reduce the burden on production resources and timelines. However, the increased audits and revised tax structures may necessitate better compliance systems and may impact the overall administrative costs for property management.
