New analysis is highlighting Newmarket as having approximately 370 more vacant or under-used homes than it did a decade ago, bucking the trend across Canada.
Real-estate trend trackers Point2 found Newmarket was 13th on a list of Canada’s 150 largest cities in terms of percentage increase in the number of vacant homes, going from 568 in 2011 to 938 in 2021, a 48 per cent rise.
The analysis also found that 86 of Canada’s largest 150 cities had seen a decrease in the number of empty homes compared to a decade ago.
The analysis is based on StatisticsCanada data, using the definition of private dwellings not occupied by persons permanently residing there. According to the analysis, York Region centres have all seen some increases in the numbers of these "vacant dwellings", with Aurora ranking fourth among Ontario cities with a 51 per cent change, increasing from 401 in 2011 to 747.
East Gwillimbury, Richmond Hill and Markham have also all seen increases in the number of homes unoccupied by usual residents.
The organization said it wanted to pursue the topic due to municipalities considering taxes on empty homes. York Region is exploring the idea in regards to increasing housing options.
“Although some analysts believe the number of vacant or underused homes in a city is an irrelevant metric, others find the numbers useful. The debate is ongoing, but we wanted to see how the number of empty homes evolved in the last decade and what correlations might be established between vacancy rates and population changes at the local level,” Point2 said. “We wanted to see its impact on local markets.”
Newmarket’s vacancy rate was at three per cent in 2021, compared to two per cent in 2011. The town has also expanded its population by approximately 10 per cent over the last decade, from about 79,978 to 87,492.
However, there are limitations to the numbers, which are based on StatisticsCanada data. Point2 said the government organization uses a broad definition.
“Homes that are not occupied by usual residents could represent vacation or secondary homes, new units in newly completed buildings, homes between tenants, or even actual empty, unused homes,” Point2 said. “The number of vacant or ‘ghost’ homes needs to be analyzed further, as the findings may vary greatly depending on the characteristics of local markets.”
Defining home vacancy is part of a study underway at York Region regarding the feasibility of a vacant home tax to improve housing stock and increase affordability. A vacant home is not defined in provincial legislation and must be determined at the municipal level, with some variance in how the jurisdictions have done it to date.
“Generally speaking, a property would be considered vacant if it has been unoccupied for more than six months during the calendar year, or if a declaration is not made, it is then deemed to be vacant in accordance with the enabling bylaw,” region staff said in an October report.
Regional staff has estimated the tax could cost millions to establish, but it could generate anywhere between $15 million to $90 million in revenue depending on implementation. An exact total of truly vacant homes is uncertain — a preliminary estimate from Newmarket said there were 60 in town based on water rates — but housing advocates have pushed for a tax as a tool worth using.
“Each market has its own characteristics when it comes to its share of empty homes and what that figure truly represents,” Point2 said. “A local vacant housing tax debate should take into consideration all the demographic, social, and economic aspects of the matter, as well as the short and long-term effects.”
