South Lakeland District Council's agreed its housing strategy.
The authority says the situation is at "crisis" point, with more than 3,000 people unable to find somewhere affordable to live.
Councillors have announced a plan to bring homes currently lying empty back into use.
They include powers to charge 150% council tax on properties that aren't used for more than two years.
They'll initially target property owners in Kendal, Ulverston, Windermere and Ambleside.
Cllr Heidi Halliday, Portfolio Holder for Housing and Strategic Growth, said: “Reducing empty homes is a key part of our overall ambition to confront the housing crisis in our area.
“Shortage of affordable housing affects all sections of our community especially young families and vulnerable elderly people.
“Thousands of people need somewhere to live. We are committed to working with our all our partners to provide more affordable homes.
“South Lakeland is a great place to live but to flourish in the future we have to retain our young people as well as looking after our increasingly older population.”
For full details of the council's housing strategy, click here.