Image Credit: CFJC Today / Kent Simmonds

By Dylana Kneeshaw

SPECULATION AND VACANCY TAX

Expansion of Speculation Tax not expected to drastically impact Kamloops housing market

Nov 24, 2023 | 3:37 PM

KAMLOOPS — Kamloops has recently been named as one of the cities that will now be included in the provincial Speculation and Vacancy Tax. The tax applies to empty secondary homes, but economists say the local market likely won’t see a market impact from it.

The BC Real Estate Association’s Chief Economist Brendon Ogmundson says the vacancy rate province-wide is around 1.6 per cent and the Speculation Tax isn’t acting as the main incentive to get people to sell or rent their secondary homes.

“I think the issue in every market, and you know, Kamloops is one of the fastest growing cities in Canada so what it really needs is housing supply,” he explained. “This probably isn’t going to do much in the way of getting supply to the market. We just need to build a lot more housing. That’s been true for a long time and that continues to be true.”

Even in larger markets where there are more out-of-country owners with vacant properties, Ogmundson says the tax isn’t having a massive effect on buyer or seller behaviour.

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“Any impact the Speculation Tax was going to have in incentivizing people to either rent out their homes or to sell their homes to people who would occupy them has already happened. In those markets, the impacts were small and pretty temporary.”

Property owners don’t have to pay the tax if they use their homes as their primary residences, or rent them out to long-term tenants. With the addition of Kamloops, the tax will apply to 59 communities throughout British Columbia.