West Coast Cities Turn to Vacancy Taxes to Grapple with Housing Crisis
West Coast cities like Portland, Seattle, and Tacoma are considering implementing vacancy taxes to address high commercial vacancy rates. These taxes aim to incentivize property owners to rent or sell vacant properties, potentially lowering commercial rents and increasing housing availability. The model has been successfully applied in other cities, such as Vancouver, where similar taxes have significantly reduced vacancy rates.
- ▪Portland's downtown office vacancy rate reached 27% by Q4 2025.
- ▪Seattle's commercial vacancy rate is reported between 25% and 34.7%.
- ▪Vancouver's implementation of an 'Empty Home Tax' has reduced its residential vacancy rate to 0.49% by the end of 2024.
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| Original publisher | The Urbanist |
| Canonical URL | https://www.theurbanist.org/west-coast-cities-turn-to-vacancy-taxes-to-grapple-with-housing-crisis/ |
| Publication time | Sun, 24 May 2026 19:52:28 +0000 |
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Opening excerpt (first ~120 words) tap to expand
If you walked through Portland, Tacoma, or Seattle today, you would no doubt note the vacant, seemingly abandoned parcels of land sitting collecting weeds and litter. You might also note the empty storefronts and “For Lease” signs that have become permanent fixtures of the streetscape. This leads one to wonder: who owns these properties, why are they empty, and what could they be better used for?By Q4 2025, Colliers reported Portland, Oregon reached another post-pandemic high of downtown office vacancies – 27%. Consequently, the City of Portland has been considering implementing fees on vacant commercial properties in an effort to drive prices down since 2025.
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