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>> The solution(s) are pretty straight forward and I believe Vancouver already initiated a tax on not living in a residence. If the goal is affordability, those

>> The solution(s) are pretty straight forward and I believe Vancouver already initiated a tax on not living in a residence. If the goal is affordability, those policies need to be increased as well as new building efforts (aka change zoning). Wouldn't simply ONLY building new buildings/housing be more effective? This way, the wealthy can continue to purchase, but the investment would become worse and worse in returns and essentially provide subsidized housing to renters. This is somewhat the case in NYC where rents are far lower than ownership carry for identical units because the units are sometimes treated as stores of value.

baybal2 6y ago
No, in short term people hoarding apartments will be happy to buy whatever amount of new property built. Probably it will hit people 2, 3 apartments, but not ones with 20+ ones.
- TuringNYC 6y ago
  I'm sorry if i'm not familiar with the situation in Canada -- but the people hoarding apartments, why do they keep them empty? Why not at least try to rent them for a partial recovery of carry cost? Wouldn't it be irrational to keep apartments empty when you could at least rent them for a bit of money. If they rent for a partial recovery, then isn't that good as renters get a good deal?
  - deleted 6y ago
    [deleted]
  - baybal2 6y ago
    > I'm sorry if i'm not familiar with the situation in Canada -- but the people hoarding apartments, why do they keep them empty? Why not at least try to rent them for a partial recovery of carry cost? Because they are too lazy? And look this https://news.ycombinator.com/item?id=26610167 https://news.ycombinator.com/item?id=26610167 Paying people money to avoid the vacancy tax sounds bizarre, beyond idiotic, but somebody does it, and it's there. They will prefer to pay money rather than bothering flying to Canada every month to collect rent, and making sure that renters keep the apartment pristine.
  - mandelbrotwurst 6y ago
    One reason might be so that you have the option to live in the place yourself on short notice.
bradleyjg 6y ago
In the NYC case the property taxes go the other way. A rental unit is taxed at a much higher rate than an equivalent condo. Nonetheless the effect you point (speculation) is so strong that renting still comes out ahead.
JamisonM 6y ago
"Wouldn't simply ONLY building new buildings/housing be more effective?" Yes, the vacant house tax is just politics, Vancouver has had some actual success with build-build-build but that strategy is limited by NIMBYs in many areas. Same with downtown Toronto, the suburbs are a pricing disaster but condo prices are not following as steep a curve simply because there is supply being built.

baybal2 6y ago

No, in short term people hoarding apartments will be happy to buy whatever amount of new property built. Probably it will hit people 2, 3 apartments, but not ones with 20+ ones.

TuringNYC 6y ago
I'm sorry if i'm not familiar with the situation in Canada -- but the people hoarding apartments, why do they keep them empty? Why not at least try to rent them for a partial recovery of carry cost? Wouldn't it be irrational to keep apartments empty when you could at least rent them for a bit of money. If they rent for a partial recovery, then isn't that good as renters get a good deal?
- deleted 6y ago
  [deleted]
- baybal2 6y ago
  > I'm sorry if i'm not familiar with the situation in Canada -- but the people hoarding apartments, why do they keep them empty? Why not at least try to rent them for a partial recovery of carry cost? Because they are too lazy? And look this https://news.ycombinator.com/item?id=26610167 https://news.ycombinator.com/item?id=26610167 Paying people money to avoid the vacancy tax sounds bizarre, beyond idiotic, but somebody does it, and it's there. They will prefer to pay money rather than bothering flying to Canada every month to collect rent, and making sure that renters keep the apartment pristine.
- mandelbrotwurst 6y ago
  One reason might be so that you have the option to live in the place yourself on short notice.

bradleyjg 6y ago

In the NYC case the property taxes go the other way. A rental unit is taxed at a much higher rate than an equivalent condo. Nonetheless the effect you point (speculation) is so strong that renting still comes out ahead.

JamisonM 6y ago

"Wouldn't simply ONLY building new buildings/housing be more effective?" Yes, the vacant house tax is just politics, Vancouver has had some actual success with build-build-build but that strategy is limited by NIMBYs in many areas. Same with downtown Toronto, the suburbs are a pricing disaster but condo prices are not following as steep a curve simply because there is supply being built.