Understanding Our Housing Crisis
Guelph is in a serious housing crisis with rapidly rising purchase costs and rental rates, lack of affordable housing options, and increasing homelessness. The average one bedroom apartment was $1,979 as of February 2024. The rental vacancy rate, how many rental homes are currently empty, is half what a healthy rate should be for our City. It is very difficult for many residents to find affordable housing.
What is Residential Vacancy?
Residential vacancy refers to homes that are unoccupied for an extended period, usually more than 6 months. These vacant residences can range from single-family homes to apartment units that remain empty despite the ongoing housing shortage. Municipalities have the power to apply vacancy taxes.
Why Do Homes Remain Vacant?
There are various reasons why homes in Guelph may remain vacant.
- The “financialization of housing” has led to people treating houses and condos as an investment that they will gain from when they sell. They are not interested in seeking return by renting their investment property since it involves interactions with other people. Transparency International Canada reports that dirty money is often used to acquire real estate in Canada.
- Houses bought for land assembly often sit empty for years waiting for a redevelopment project to start.
- Owners live abroad or in other cities, leaving their properties unused for years.
- Reluctance to enter into rental agreements because of the incredible wait times for hearings at the Landlord Tenant Tribunal if things go badly.
For a fuller understanding see this TVO documentary.
Why Vacant Homes Matter in Guelph
Vacant housing has a negative financial, environmental and social impact on communities. Vacant homes are not just empty spaces; they represent missed opportunities for housing those in need.
On a moral level, it’s unjust to have homes sitting empty when so many people are struggling to find affordable housing.
Vacant homes negatively impact communities when they become eyesores, leading to decreased property values in the surrounding areas.
Communities Are Addressing Residential Vacancy
Cities across Canada are implementing a residential vacancy tax of 1-3% of assessed value per year, with proceeds funding housing.
- British Columbia: Much of the province now has a 0.5% vacancy tax (2% for foreign owners) as of January, joining Vancouver and Victoria from 2018. $81 million was raised in 2022 to build affordable homes.
- Toronto: Started in 2022 at 1%, increased to 3% for 2024 if vacant >6 months in a calendar year. $107 million was raised in two years to build affordable homes.
- Ottawa: Started in 2023 at 1% of assessed value if vacant > 184 days.
- Hamilton: Started in 2024 at 1% if vacant >183 days in the previous calendar year.
- Windsor: Started in 2024 at 3% if vacant >183 days in any taxation year.
- Sault Ste Marie: To start in January at 4%. A complaint-based process will be used.
Guelph Need a Vacancy Tax
Civic leaders are concerned about local vacancy. Mayor Guthrie and MPP Schreiner have both said their biggest concern is the units that are bought and sit vacant until they can be sold later on for a profit.
The Ford government has declared that “an unoccupied home is unacceptable during a housing crisis.”
We know that reducing residential vacancy will help:
- Make more housing available
- Keep taxes down by avoiding development charge subsidies for new builds
- Reduce our overall environmental impact
City staff recently included the option of having a vacancy tax in its Affordable Housing Report. We can help city council seriously consider it. Let’s join together to ensure that every home serves its purpose – providing shelter for those who need it.
What Can You Do to Help?
- Sign the petition
- Nominate a vacant home in Guelph. If a home in your neighbourhood has been unoccupied for 6+ months in the last year, it can be considered for a vacancy tax. Submit your nomination and it will be verified and added to the Gallery and Map of Guelph’s Vacant Homes.
- Join the Guelph Vacancy Tax Working group by emailing us at .
