The multi-residential tax rate is a property tax rate applied to apartment buildings and other properties with multiple dwelling units. In many jurisdictions, multi-residential rates fall between residential and commercial rates, recognizing that apartment buildings are housing but operate more like businesses than single-family homes. Historically high multi-residential rates in some provinces have been criticized for discouraging rental housing investment and increasing rents. Some municipalities have reduced multi-residential rates to encourage rental construction and improve housing affordability. Provincial legislation determines whether municipalities can set distinct multi-residential rates and may mandate gradual rate adjustments toward provincial targets.