No, this is just what the landlords say, like how they say raising wages would impact jobs. It’s just not true. Landlords already charge the maximum people are willing and able to pay, they can’t really pass those costs on. Just like how in fact companies hire based on how many employees they need to fulfil their contracts, and it’s only affected marginally by the wages.
When a cost goes up for all owners at once, this leads to everyone at once raising rent prices. There is no opportunity for a renter to jump ship to a cheaper property, they all went up. The maximum changed.
Yes, this will price out many people from being able to afford housing.
That would leave properties empty with high taxes, pretty bad financial decision for a landlord. Leaving properties empty to land bank works if they don’t have to pay anything but it would be ruinous in this scenario. They will lower prices.
No, it’s not. Currently taxes are not nearly high enough to impact the value proposition of doing that while you expect significant capital gains. Increased property taxes additionally lower property values and exactly counteract that. Those properties are not empty for funsies, their owners expect to make a profit doing that. With stagnating or falling prices and high taxes they will be quickly motivated to sell or rent, at a price a middle class or lower class person is actually able to pay.
Property tax is based on property values. Rich people have more valuable properties. Of the taxes we actually have, it’s one of the most progressive as it actually hits wealthy people more.
You have fallen for propaganda, this simply isn’t true.
Please enlighten me how a property tax increase doesn’t hurt the middle and lower class disproportionately. I’d love to hear this.
Someone replied fifty minutes ago with an answer. You have no interest in learning why you’re wrong.
For everyone else, in NYC the middle class disproportionately rents. It is the wealthy who own.
Just like every other cost related to owning and maintaining a rental: property taxes get passed down to renters.
This tax disproportionately affects middle and lower class individuals.
If the landlords could charge more, they’d already be doing it.
No, this is just what the landlords say, like how they say raising wages would impact jobs. It’s just not true. Landlords already charge the maximum people are willing and able to pay, they can’t really pass those costs on. Just like how in fact companies hire based on how many employees they need to fulfil their contracts, and it’s only affected marginally by the wages.
When a cost goes up for all owners at once, this leads to everyone at once raising rent prices. There is no opportunity for a renter to jump ship to a cheaper property, they all went up. The maximum changed.
Yes, this will price out many people from being able to afford housing.
That would leave properties empty with high taxes, pretty bad financial decision for a landlord. Leaving properties empty to land bank works if they don’t have to pay anything but it would be ruinous in this scenario. They will lower prices.
Welcome to New York City. This is already the case.
No, it’s not. Currently taxes are not nearly high enough to impact the value proposition of doing that while you expect significant capital gains. Increased property taxes additionally lower property values and exactly counteract that. Those properties are not empty for funsies, their owners expect to make a profit doing that. With stagnating or falling prices and high taxes they will be quickly motivated to sell or rent, at a price a middle class or lower class person is actually able to pay.
Property tax is based on property values. Rich people have more valuable properties. Of the taxes we actually have, it’s one of the most progressive as it actually hits wealthy people more.