Canada’s Abandoned Homes in 2025: How New Rules, Taxes, and Community Action Are Changing Neighborhoods

These empty residences have significant impacts: they can contribute to housing shortages, create safety and fire risks, and affect neighbourhood stability. Although abandoned and vacant properties are present across Canada, most available information and active measures are currently municipal, notably in major cities like Ottawa, Vancouver, and Winnipeg. This article explains the key drivers, trends, regulatory actions, and ongoing challenges related to abandoned and vacant homes in Canada in 2025, based on updated local and national reporting.

How Governments Address Vacancy and Derelict Homes

Housing Shortage and Affordability Crisis

Vacant and abandoned properties, especially in urban centres, reduce housing supply amid an ongoing affordability crisis. Canadian cities view reclaiming underused homes as a strategy to provide more rental and ownership opportunities, support community revitalization, and deter property neglect.

Municipal Vacancy Taxes: Ottawa and Vancouver

Ottawa and Vancouver have implemented vacancy tax policies with annual declarations and progressive tax penalties to address prolonged residential vacancy.

Ottawa: The Vacant Unit Tax (VUT)

• Who is affected?
  Owners of residential properties in Ottawa (with six units or fewer) must submit a declaration each year stating the occupancy status of their property, regardless of whether it is vacant or occupied.

• How is vacancy defined?
  A property is considered “vacant” if unoccupied for more than 184 days in the previous calendar year, unless qualifying for an exemption (such as legal renovations, hospitalization, or death of the owner).

• Graduated Tax Rates:
  • 1% of the property’s assessed value in the first year of vacancy
  • Increases by 1% for each subsequent consecutive vacant year (up to 5%)
  • The rate resets after one year of occupancy
• Penalties for Non-compliance:
  • Failure to file incurs a $250 fee
  • False reporting or failure to provide evidence can result in fines up to $10,000
  • Random audits may require owners to provide proof of occupancy or eligibility
• Revenue Allocation:
  Net revenue from the VUT is allocated to affordable and supportive housing initiatives in Ottawa. The city has stated a goal to support the construction of up to 500 new affordable units annually.

Vancouver: The Empty Homes Tax (EHT)

• Annual Declaration Requirement:
  All residential property owners must declare occupancy status by February 4, 2025, or face late fines.

• Vacancy Criteria:
  If a home is not a principal residence or is not rented out for at least six months per year, it is classified as vacant.

• Tax Rate:
  For 2024 (affecting 2025 payments), the tax rate is 3% of the property’s assessed value for homes deemed vacant.

• Enforcement:
  • $250 late declaration fine
  • Audits are conducted to verify claimed exceptions
• Results So Far:
  • A 58% decrease in vacant homes has been reported by the City of Vancouver since 2017 (from approximately 2,800 to just over 1,150 by 2023)
  • Nearly half of previously vacant homes were re-occupied within a year of being taxed, according to city reports
• Revenue Use:
  $169.8 million has been allocated to affordable housing since the tax’s inception, including $27.4 million in 2023.

Compliance and Reporting

Ottawa and Vancouver require annual declarations from all property owners in their vacancy tax classes. This system is designed to support accurate reporting of property occupation.

• Multiple submission methods are available, including online portals, phone, and in-person appointments.
• Audit and documentation: Owners must retain records to support the property’s declared status.

Other Interventions: Winnipeg’s Fire and Safety Initiatives

In addition to tax policies, certain cities are focusing on public safety issues associated with abandoned properties:

• Winnipeg:
  • In 2024, there were 182 fires reported in vacant buildings between January and September, as reported by city officials.
  • Most fires occurred in the inner city and are reported to be intentionally set.
  • An “unsafe conditions response team” is expected to be launched in 2025 to identify, secure, or repair at-risk properties.
  • Calls for stronger deterrents—including increased fines and potentially property seizure—have come from some local community leaders to address recurring offenses and expedite the repurposing or demolition of derelict homes.

Ongoing Challenges in Addressing Vacant and Abandoned Properties

Despite local policy action, several challenges remain:

• Absence of a Comprehensive National Database:
  There is no authoritative, countrywide count or geographic breakdown of abandoned, vacant, or derelict homes across Canada as of 2025.
• Rural and Provincial Gaps:
  Most data and policy attention currently focus on urban centres, with limited information about practices or the extent of abandonment in rural or small-town settings.
• Public Safety Risks:
  Abandoned properties continue to present risks, including vandalism, arson, and unauthorized occupation, especially in colder climates.
• Administrative Challenges:
  Annual declaration systems can require significant compliance efforts from both property owners and administrators.
• Barriers to Repurposing:
  Challenges such as complex ownership structures, property condition, and (in some regions) insufficient penalties can slow the transformation of vacant homes into affordable units.

Costs and Requirements for Property Owners

For residential property owners in major Canadian cities in 2025:

• Declaring Property Status:
  • Annual declarations are typically required (even for occupied properties)
  • Multiple declaration methods are available: online, by phone, or in-person
  • Failing to declare may result in fines and automatic classification as vacant
• Vacancy Taxes:
  • Tax rates range between 1–3% (or higher in cases of prolonged vacancy, such as up to 5% in Ottawa) of the property’s assessed value
• Potential Exemptions:
  • Certain life events (such as owner hospitalization or estates)
  • Major renovations or legal restrictions that prevent occupancy
• Enforcement:
  • Owners may be audited for up to two years
  • Supporting documentation (such as rental agreements or utility bills) may be required
• Use of Tax Proceeds:
  • Net revenues are used to fund new housing initiatives for lower-income residents, according to municipal program details

Policy Developments and Future Outlook

Municipal vacancy taxes, enhanced reporting, and targeted safety initiatives continue to play significant roles in Canada’s response to abandoned and vacant homes as of 2025. Available data suggest reductions in urban property vacancy in areas where enforceable penalties are in place. However, the absence of comprehensive national statistics and a coordinated approach continues to pose challenges. Ongoing efforts include policy innovation, consistent enforcement, and increased funding for affordable housing to address the issue sustainably.

Property owners and stakeholders are encouraged to stay informed about local regulations, declaration processes, and the potential implications of non-compliance.

Sources

• Ottawa Vacant Unit Tax: Understanding the Vacant Unit Tax
• Vancouver Empty Homes Tax—2024 Update
• CTV News: Winnipeg Faces Worst Year for Vacant House Fires in 2024

Disclaimer: All content, including text, graphics, images and information, contained on or available through this web site is for general information purposes only. The information and materials contained in these pages and the terms, conditions and descriptions that appear, are subject to change without notice.