Comment by chasd00
2 days ago
What if the person who owns the land is working class? That’s who property taxes hit the hardest, working class people with a mortgage.
2 days ago
What if the person who owns the land is working class? That’s who property taxes hit the hardest, working class people with a mortgage.
https://www.minneapolisfed.org/article/2024/how-higher-prope...
The Federal Reserve's research suggests higher property taxes help the young and the working class by improving the immediate affordability of homes.
That article is ridiculous “More expensive tomorrow, more affordable today”. It reads like a predatory credit card offer and is full of what if’s.
High property taxes pushing down the sales price of a house does not help the buyer or seller. The buyer is going to pay the same, just more in taxes vs the loan, and the seller is going to get less because high taxes have reduced the value of their home.
That article is also based on real studies on observable differences between cities today.
It means higher property taxes means lower sales prices, less debt for buyers, and younger people buying their first home and forming families.
A land value tax is better, because it doesn't raise your taxes for improving your home.
This is exactly right. The elasticity on the buying side (not private equity) just isn't there like it may have once been.