Toronto considering taxing vacant homes in bid to cool red-hot housing market

Toronto Mayor John Tory is asking city staffto investigate the impact of taxing homes that sit vacant as a way of making more homes available and cooling the city'sred-hot real estate market an idea the provincial finance minister seems open toas well.

Tory told reporters aboutthe proposalafterameeting Thursday with experts in the real estate, banking, business and housing sectors.

He cited census datathat suggests there are as many as65,000 homes empty in the city right now and his officials will now sift through city data such as hydro and housing bills to find a more accurate number.

"That is a very significant number and it is a number of homes that, if they are vacant or are not on the market...that has an impact on prices," Tory said.

Tory said officials would look to Vancouver for ablueprint.

Starting this year, owners of homes deemed empty in Vancouver must pay an annual tax of one per cent of the property's assessed value.

That means a $1-million home left vacant would be taxed $10,000.

• Vancouver approves empty homes tax

'Should be paying their fair share'

While Tory wants to explore the vacant home tax, "this would likely require provincial intervention, either a regulatory change or an amendment to the City of Toronto Act," said a written statement from the mayor's office.

At least one senior member of Ontario Premier KathleenWynne'sgovernment seems receptive to the idea.

"We know that demand is high. Supply is not keeping pace and if there are a number of vacancies that are out there then they should be paying their fair share," Finance Minister CharlesSousasaid.

Mayor vows to speed up approval process

Tory called Thursday's conversation with housing expertsan "excellent, very constructive meeting," and also emerged pledging to speed up the approvals process for planning applications and building permits.

A beefed-up staff of city planners is one way the city will be able to do it, the mayor said.

There was "a broad consensus" that lack of housing supply was the big factor leading to skyrocketing home prices in Toronto, Tory said.

The citysaw a 29.8 per cent jump in the average price of detached homes from February 2016 to February 2017, according to the Toronto Real Estate Board.

The average detached home price in the city is$1,573,622. the board says.

• Torontonians stuck in housing amid skyrocketing costs

"I'm not interested in measures which create the false impression of an instant total solution, nor am I interested in risky measures which would imperil our economy," Torysaid.

Empty homes are a 'waste,'homeownersays

At least one homeowner that CBC Toronto spoke to applauds the idea of a vacant homes tax.

Jacques Lavoie, who has lived in the same Riverdale neighbourhood for two decades, saidahomearound the corner from his property on Dundas Street Easthas sat empty for at least the last five years.

"It seems like its a waste, considering the issues of density and people trying to find a home," Lavoie said.

"I worry the values have gone up so much ...If I was in a situation where I was 20 years ago, when I was looking for a house, I don't know, I wouldn't have bought a house. I wouldn't have been able," hesaid.