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'Put everything on the table': Newmarket housing advocates welcome tax on vacant homes

'We have a housing crisis right now, and having vacant homes only adds fuel to that fire,' Newmarket real estate broker says of York Region's consideration of a tax to improve supply
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Blue Door CEO Michael Braithwaite said his company saw an opportunity in the 44 vacant buildings owned by Parks Canada within the Rouge Valley in Markham.

The York Region emergency housing non-profit took it on as a social enterprise in 2020, fixing up one of them and turning it into affordable housing.

Most of those buildings still remain vacant and undeveloped. But Braithwaite said there are plenty of vacant homes out there that could house someone in need.

“There are thousands of vacant homes across the country. York Region, more Marham, has all sorts of heritage homes that are vacant. There are lots of vacant homes throughout the region,” he said.

Local housing advocates are welcoming York Region exploring of a vacant housing tax to improve supply.  Although precise data is limited on the number of vacant houses in Newmarket, advocates say it is an issue worth addressing.

Originally implemented in Vancouver, the tax would add costs for those leaving their houses vacant. It was done there in a bid to cool real estate speculation.

Newmarket real estate broker Darcy Toombs said vacant houses concern him. He said of the 1,820 homes sold in Newmarket in 2021 up to November, 316 were vacant, or about 17 per cent. 

Some might have only been recently vacant, such as landlords moving tenants out to assist with a home sale. But Toombs said homes empty for investment purposes is an issue he sees, particularly in the southern end of the region.

“We have a housing crisis right now, and having vacant homes only adds fuel to that fire,” he said. “Using housing as an investment like that, I find a little frustrating, especially given the current environment we’re seeing in the market.” 

Housing prices have ballooned in York Region in recent years. Newmarket reached an average sale price of $1.2 million in 2021. It has rendered housing unaffordable to many and contributed to York declaring a housing crisis last February.

But a more precise scope of the problem in Newmarket is uncertain, with no formalized study into the matter. Deputy Mayor Tom Vegh offered a preliminary estimate of about 60 vacant homes in Newmarket Oct. 14. That was based on water rates: residential homes with water meters that registered consecutive zero water consumption between April to September, according to treasurer Mike Mayes. 

“It is important to note that the definition of ‘vacant properties’ in Newmarket has not been determined yet,” Mayes said. “As a result, how council intends to define vacant properties will significantly impact the number of properties affected.”

York staff estimated the tax could bring in between $15 million to $90 million in revenues annually depending on implementation, though it will cost millions to start up. Regional staff suggested they could use the dollars to develop affordable housing. 

That is something worthwhile for the Affordable Housing Coalition of York Region. The local advocacy group pushed the vacant tax about a year ago as part of a slate of options to address the housing situation in York Region.

“It is a definite contributing factor to the housing crisis,” co-founder Yvonne Kelly said of vacant housing. “It takes rentals off the market meaning less stock, higher prices … It interferes with the ability to house people.” 

The organization has launched a survey asking people about their opinions on the idea to educate and present the region with an indication of public sentiment.

Kelly said there are other tools worth considering, but society needs to get away from thinking of houses as a commodity to solve the housing crisis.

“It becomes necessary to put everything on the table,” she said. “We are really trying to promote housing as a human right.”

Toombs said he is not pro-government intervention but supports a vacant housing tax. He said the crux of the housing issue is demand outstripping supply, and a lack of proper housing stock, particularly smaller homes for seniors.

“There’s just not enough housing getting built,” he said.

Braithwaite said it is difficult for organizations like his to place those in need within affordable housing in Newmarket right now. He said the housing crisis will take all levels of government working together.

But he said a vacant housing tax is a good idea, even if it cannot fix everything.

“There’s not one way. This is not the golden parachute that is going to end homelessness or rapidly increases the amount of units on the market,” he said. “But it’s something.”