Residential Vacancy Tax: Economic Impact Report

A proposed San Francisco ballot measure imposing a tax on owners of vacant residential units would target units vacant for over 6 months in buildings with more than two units, contributing revenue to the Housing Activation Fund for affordable housing. Census data reveals an average of 20,000 to 30,000 vacant units annually, with a 40% increase in 2020, mainly in units listed "For Rent." This report explores potential behavioral responses to the tax, estimating revenue and projecting a positive but small economic impact, including GDP growth and job creation.