An empty-homes tax meant to penalize real-­property owners who leave their Oahu residences vacant for extended periods of time was formally deferred Wednesday evening by the Honolulu City Council.

The council decided to follow the city administration's request to wait for a study to be completed on the measure

The decision to introduce the premium was made at a council meeting last week. For homes which have stood empty for between one and five years, owners will pay double the standard level of council tax. Homes unoccupied for between five and 10 years will be three times the standard charge.

The empty homes proposal, which would raise property taxes on homes left vacant at least six months out of the year, drew a packed house and hours of testimony before the council delayed a vote until the completion of a fiscal study, with initial results expected in January.

The Residential E classification simplifies the original (EHT) proposal by integrating it into the city’s property tax system,” Council staff stated in a news release. “It targets vacant or underused residential properties,

A recent time-lapse video shows a tower in Kakaako with only few lights on at night. Advocates say it’s a glaring example of luxury condos with no one living inside.

Council members say Honolulu’s housing crisis, which a 2019 state-commissioned study estimated requires adding more than 22,000 units by next year to meet demand, spurred the empty homes tax. Tax those units sitting vacant, the thinking goes, and owners will have incentive to sell or rent them out.

The UHERO blog notes that the current proposal — which is similar to a policy enacted in Vancouver, Canada — could free up thousands of housing units.