Comment by nly
2 days ago
A land tax would effect every single landlord though. Every single landlord would put up rent.
The market will bare it because people have no choice. The choice is homelessness or paying the higher rent.
It's principally the same when mortgage rates rise. Landlords with mortgages put up rent. Only it would be worse, since not all landlords have mortgages.
Do you have data for this? The data I've seen in the past is that landlords are not in aggregate able to pass on mortgage rate increases as rent increases, possibly because their tenants are already squeezed to the limit and there is simply no more money to be had. So when mortgage rates go up rents stay roughly constant and property values go down.