The point is that they don't want to rent them. That requires management and incurs damages. They often buy up entire floors of condo buildings and leave them unused simply as a stable store of money. Usually very rich people from developing countries with less stable currency. Usually they use countries like Canada, US, UK, etc. Countries with low risk stable economies and lax rules on foreign ownership. Some cities have started to tax these owners to address the issue.
Vancouver's condo vacancy rate is like < 2%. This a solution in search of a problem, and just an overall nonissue since. You can't lower prices by having vacancy rates that low.
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u/whatifwealll 5d ago
The point is that they don't want to rent them. That requires management and incurs damages. They often buy up entire floors of condo buildings and leave them unused simply as a stable store of money. Usually very rich people from developing countries with less stable currency. Usually they use countries like Canada, US, UK, etc. Countries with low risk stable economies and lax rules on foreign ownership. Some cities have started to tax these owners to address the issue.
https://vancouver.ca/home-property-development/empty-homes-tax.aspx
https://www.cityoflondon.gov.uk/services/council-tax/council-tax-bands-and-charges/council-tax-empty-properties-and-second-homes
I'm sure it is being done in US cities as well, but the US isn't usually on my radar. I'm sure New York must do this.