April 6, 2007

Foreign Ownership and Vacancy Rates

A Price Tags reader was reading Michael Geller’s blog entry on Australia’s Gold Coast, and one of the things that jumped out at him was this:

There is a 50-per-cent cap on the number of foreigners who can buy into any new multi-family building in Australia.

“Very interesting,” he thought, “particularly given the apparently high rates of foreign/absentee ownership in our downtown core.  …. There are fears that we are becoming a “resort city” of sorts.  Could the City actually legislate a restriction on foreign ownership?  Or tax foreign investors with multiple homes differently…. and perhaps use increased revenue to fund more social housing?”
So how much foreign ownership is there?  He asked a numbers guy who works with census data (and since I haven’t asked whether he’d mind seeing his name in print, we’ll keep calling him Numbers Guy):

For the first time this census includes numbers of permanently occupied and total numbers of dwellings (by block) so it’s possible to see the ‘occupation rate’ of city blocks.  

Among the lowest is Coal Harbour, which you’d expect, and even there 60% of the dwellings are occupied by permanent residents. Concord Pacific runs at between 75% and 90% occupied by permanent residents. Some of the vacant units will of course be just that, those being sold or bought or rented, but empty on Census day. Some of the ‘absentees’ are Albertans, so until we make them leave Canada and join Texas as a confederation, we can’t really penalise them. Of course, they already pay more tax as they’re not able to get the homeowners grant (and they consume very few city services when they’re not around).

That won’t settle the issue, of course.  But it certainly reflects the difference between Canada and Australia on immigration policy (5.85 migrants per thousand population for Canada; 3.85 for Australia) and acceptance rates for asylum seekers  (36 percent for Canada; 20 percent for Australia).

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  1. This is a thought that has been bouncing around in my head every time I walk through Coal Harbour at night and see so many dark units. I really think we should be discouraging absentee owners (foreign or Canadian), especially in our housing crunch situation. Having units sit empty as seldom-used vacation spots or as investments infuriates me.
    The developers’ bottom line may love it but how do you build community when almost half your units are empty?

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