Item - 2022.EX29.8

Tracking Status

  • City Council adopted this item on February 2, 2022 without amendments.
  • This item was considered by the Executive Committee on January 26, 2022 and adopted without amendment. It will be considered by City Council on February 2, 2022.
  • See also MM38.1

EX29.8 - Request the Government of Ontario Help to Stop Out-of-Control Housing Prices by Imposing a Home Speculation and Home Flipping Tax

Decision Type:
ACTION
Status:
Adopted
Wards:
All

City Council Decision

City Council on February 2 and 3, 2022, adopted the following:

 

1. City Council request the Government of Ontario to introduce a Home Speculation and Home Flipping Tax to help stop the extreme increases in home prices driven by land speculators and home flippers in the City of Toronto.

Background Information (Committee)

(January 11, 2022) Letter from City Council referring Member Motion on Request the Government of Ontario Help to Stop Out-of-Control Housing Prices by Imposing a Home Speculation and Home Flipping Tax
https://www.toronto.ca/legdocs/mmis/2022/ex/bgrd/backgroundfile-175026.pdf

Communications (Committee)

(December 22, 2021) E-mail from Greta Whipple (EX.Main)
(January 25, 2022) E-mail from Dr. Brian Doucet, Canada Research Chair, University of Waterloo (EX.New)
https://www.toronto.ca/legdocs/mmis/2022/ex/comm/communicationfile-144390.pdf
(January 25, 2022) E-mail from Kevin Crigger, President, Toronto Regional Real Estate Board (EX.New)
https://www.toronto.ca/legdocs/mmis/2022/ex/comm/communicationfile-144368.pdf

Communications (City Council)

(January 27, 2022) E-mail from David Farb (CC.Supp)
(January 27, 2022) E-mail from Rosalind Holeton (CC.Supp)
(January 28, 2022) E-mail from Naomi Miller (CC.Supp)
(January 28, 2022) Letter from Geoff Kettel and Cathie Macdonald, Co-Chairs, Federation of North Toronto Residents' Associations (CC.Supp)
https://www.toronto.ca/legdocs/mmis/2022/cc/comm/communicationfile-144737.pdf
(January 28, 2022) E-mail from Adam Tracey (CC.Supp)
(January 30, 2022) Letter from France Rochette, Chair, Upper Avenue Community Association (CC.Supp)
https://www.toronto.ca/legdocs/mmis/2022/cc/comm/communicationfile-145104.pdf
(January 31, 2022) Letter from Sheila Dunlop, South Armour Heights Residentsí Association (CC.New)
https://www.toronto.ca/legdocs/mmis/2022/cc/comm/communicationfile-145185.pdf
(February 1, 2022) E-mail from Theodore Kebede (CC.New)
(February 1, 2022) Letter from Christine Mercado, Chair, Long Branch Neighbourhood Association and Judy Gibson, Vice Chair, Long Branch Neighbourhood Association and Chair, Tree Canopy Preservation and Enhancement Committee (CC.New)
https://www.toronto.ca/legdocs/mmis/2022/cc/comm/communicationfile-145239.pdf

Motions (City Council)

Motion to Adopt Item (Carried)

Vote (Adopt Item) Feb-02-2022 10:01 AM

Result: Carried Majority Required - EX29.8 - Adopt the Item
Total members that voted Yes: 21 Members that voted Yes are Paul Ainslie, Ana Bail„o, Brad Bradford, Shelley Carroll, Mike Colle, Joe Cressy, John Filion, Paula Fletcher, Michael Ford, Mark Grimes, Mike Layton, Nick Mantas, Josh Matlow, Jennifer McKelvie, Denzil Minnan-Wong, Frances Nunziata (Chair), Gord Perks, Anthony Perruzza, Michael Thompson, John Tory, Kristyn Wong-Tam
Total members that voted No: 4 Members that voted No are Gary Crawford, Stephen Holyday, Cynthia Lai, James Pasternak
Total members that were Absent: 1 Members that were absent are Jaye Robinson

EX29.8 - Request the Government of Ontario Help to Stop Out-of-Control Housing Prices by Imposing a Home Speculation and Home Flipping Tax

Decision Type:
ACTION
Status:
Adopted
Wards:
All

Committee Recommendations

The Executive Committee recommends that:

 

1. City Council request the Government of Ontario to introduce a Home Speculation and Home Flipping Tax to help stop the extreme increases in home prices driven by land speculators and home flippers in the City of Toronto.

Origin

(January 11, 2022) Letter from City Council referring Member Motion on Request the Government of Ontario Help to Stop Out-of-Control Housing Prices by Imposing a Home Speculation and Home Flipping Tax

Summary

City Council on December 15, 16 and 17, 2021, referred Motion MM38.1 to the Executive Committee.

 

Summary from Member Motion:

 

Given the out of control, hyper escalation of home prices in Toronto, making housing affordability impossible for most Torontonians, and given that these out of control housing prices are fueled by real estate speculators and home flippers ("investors") who are buying multiple properties other than their primary residence, it's time for the Ontario Government to stop out-of-control housing prices by re-imposing a Land Speculation Tax to stop home speculators from unfairly driving up the cost of housing in Toronto to unprecedented levels.

 

Recent data from the Toronto Regional Real Estate Board shows that home prices in the City rose by an alarming 22 percent over the last year making the average selling price for a resale house or condo $1.16 million (up from $955,889 which was last November’s average).

 

This explosion in housing costs is being fueled in large part by home speculators who are purchasing multiple homes and flipping them for huge profits. According to Teranet, an unprecedented 25 percent of all property sales in Toronto are now to land speculators (so called "investors") up from 16 percent in 2011.

 

According to research by the Canadian Mortgage and Housing Corporation, home prices in Canada have risen 30 percent since the start of the COVID-19 pandemic and land speculation is partially to blame. Canadian Mortgage and Housing Corporation Chief Economist, Brad Dugan says that's “something that worries [him] because that adds extra froth to the market, pushes home prices higher and can create a harder landing if and when the market turns and prices correct.”

 

When Toronto was facing a similar problem in the early 1970s, Ontario Premier Bill Davis implemented a 50 percent Land Speculation Tax on people buying and selling homes that were not their principal residence. This tax is credited with slowing the extreme increase in property values in Toronto in the 1970s.

 

Urgent action is needed to help stop the extreme increase in home prices in Toronto, driven by home flippers and land speculators who treat housing like a Bitcoin-type commodity.

Background Information

(January 11, 2022) Letter from City Council referring Member Motion on Request the Government of Ontario Help to Stop Out-of-Control Housing Prices by Imposing a Home Speculation and Home Flipping Tax
https://www.toronto.ca/legdocs/mmis/2022/ex/bgrd/backgroundfile-175026.pdf

Communications

(December 22, 2021) E-mail from Greta Whipple (EX.Main)
(January 25, 2022) E-mail from Dr. Brian Doucet, Canada Research Chair, University of Waterloo (EX.New)
https://www.toronto.ca/legdocs/mmis/2022/ex/comm/communicationfile-144390.pdf
(January 25, 2022) E-mail from Kevin Crigger, President, Toronto Regional Real Estate Board (EX.New)
https://www.toronto.ca/legdocs/mmis/2022/ex/comm/communicationfile-144368.pdf

Motions

1 - Motion to Adopt Item moved by Mayor John Tory (Carried)
Source: Toronto City Clerk at www.toronto.ca/council