• porous_grey_matter@lemmy.ml
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    3 hours ago

    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.

    • RamRabbit@lemmy.world
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      3 hours ago

      That would leave properties empty with high taxes

      Welcome to New York City. This is already the case.

      • porous_grey_matter@lemmy.ml
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        2 hours ago

        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.